DoJ Failures and the Continuing Saga of LandAmerica

Saturday, September 05, 2009 , , , , 0 Comments

Hey kids, remember LandAmerica? Yeah, we're not done yet. You wish.

The LandAm bankruptcy docket gets curiouser and curiouser, this time the exchangers are mad as hell and not going to take it anymore. You can only fuck with people so much, you know.

Until SunTrust and Citigroup officially get dragged into the melee (someone write down that I said this so I can kick Roubini's ass, it'll happen and hopefully sooner rather than later) over ARS deals gone awry, this is a non event in comparison but relevant none-the-less.

To trustee Robert Van Arsdale:

I have been watching the LandAmerica/LES proceedings carefully. My wife is a victim of the Ponzi scheme their management perpetrated on 450 customers last year. It’s the same Ponzi scheme they evidently neglected to tell the bankruptcy court about when they applied to become debtor-in-possession. My dismay about that continues to increase almost daily.

We are finally pointed towards exiting bankruptcy. That could be a good thing. But, pointing is different from exiting. For example, a lousy plan would be a lousy thing. And, lousy isn’t good for elections.

While a debtor-in-possession might be expected to continue to ‘flip the bird’ at its customers and victims, the same should not be said for a creditor committee or the law firms they hire. But that’s essentially what I’ve observed from the net results of our creditors committee: there’s nothing on my list of its accomplishments all these months that leads me to believe otherwise. That’s truly a pathetic state of affairs to find ourselves in at this late date.

I communicate frequently with many victims of this ever-expanding LandAmerica fraud. With the upcoming vote, you may want to know that many of us share this sentiment and feel this committee’s credibility passed the point of no return long ago. So, we are trying hard to help out in this run-up to the election.

Many of us have tried to communicate with the committee members or their attorneys from the beginning, yet their responses to our concerns, few as there have been, have often been demeaning and derogatory. It may well be true that some of these committee people and $900/hour attorneys really are smarter and loftier than the rest of us. Or that none of us victims would be able to measure up against them on pop quiz about this case. Who knows? However, the behavior of some of them suggests that THEY believe it, and that’s good enough reason right there to send the whole crew packing. In fact, the committee has failed in fulfilling its responsibilities to the rest of us. Not even a close call.

Aside from a self-congratulatory letter from a committee attorney about the upcoming exit plan, there have been no communications from them. If they're hoping that a last-second backslap looking for my vote on the plan is going to sway me, or if a take-it-or-leave-it-strings-attached-style plan is shoved down our throats … well, they may need to pull an awfully large rabbit out of the hat.

Straight from one exchanger's mouth to the "trustee" of this farce.

Could this be another DoJ failure? I won't hold my breath for a reasonable resolution, I've seen their track record. Skeptical CPA can enlighten you on how the DoJ operates should you need a quick primer.

Too bad I missed the big LandAmerica art auction. At least they didn't make the same mistake as Lehman did when they were slaughtered, erm, failed in 2008.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.