Mortgage Broker
Chapter 11 Trustee
A member of DSI was appointed the chapter 11 trustee for Estate Financial Mortgage Fund, LLC (“EFMF”), currently pending in Santa Barbara, California. EFMF received investments from almost 1,700 individual investors and in turn invested more than $170 million through Estate Financial, Inc. (“EFI”), the former manager of EFMF. Through its engagement by the EFMF trustee and by the chapter 11 trustee of EFI, DSI has been tasked with collecting or foreclosing on more than 544 loans with a principal balance of more than $315 million. As a part of this process, the DSI team is developing and implementing action plans to maximize the value of more than 90 residential real estate development projects in California.
DSI Team: Brad Sharp, Clare Pierce, Matt Sorenson & Sean Farrell
Real Estate Development
Litigation Consultant
On behalf of a limited partner of multiple residential real estate development partnerships, DSI reviewed all historical transactions and provided forensic accounting analysis to determine if the transactions as recorded on the books and income tax returns, including the allocation of profits and losses and distributions to partners, were appropriate and in compliance with the partnership agreements. We prepared a detailed accounting report of the revised analysis of those components recasting the partners’ individual capital accounts.
DSI Team: Kyle Everett, Yale Bogen, Rose Jane Delarosa
Multinational Dairy & Food Company
Expert Witness & Expert Consultant
DSI was engaged by the Joint Official Liquidators for Food Holdings Limited and Dairy Holdings Limited to provide expert testimony and expert consulting services in connection with structured finance transactions associated with Parmalat S.p.A. Specifically, members of DSI provided expertise related good banking practices and whether the financial institution that sponsored the transactions followed its own internal policies and procedures. Further, DSI was asked to determine the implications of failure to follow such policies, procedures and practices.
DSI Team: Brad Sharp, Brian Calvert, Clare Pierce
Financial Services
Expert Witness and Consulting Expert for Rabobank
Brad Sharp and Brian Calvert were engaged by Rabobank in London as U.S. banking experts with respect to a co-lender’s claim that Rabobank was negligent in purchasing a loan from this co-lender. The dispute stemmed from the failure of a California-based processor of dried fruit and nuts. Mr. Sharp provided four reports and testified in the High Court of Justice (U.K.) with respect to Rabobank's actions. Mr. Calvert acted as a consulting expert providing tactical and strategic advice in the case. Mr. Sharp and Mr. Calvert's expertise related to banking, securitizations and agricultural finance.
DSI Team: Brad Sharp, Brian Calvert, Matt Braun & Cathy Vance
Coal Mining
Post-Confirmation Trustee
DSI was appointed Trustee of the post-confirmation trust, with work including identification and prosecution of 700 avoidance actions having a demand value of $250 million, as well as claims reconciliation and objections. DSI has also overseen the post-sale reconciliation process with the buyer.
DSI Team: Geoff Berman, Matt Sorenson, Matt Farnsworth, Jill Costie & Tania Kingsbury
Entertainment, Cruise Ships
Expert Witness for Secured Lender
DSI was retained by the Bank Group to provide an expert report and valuation testimony, as well as rebuttal to the plaintiff's expert, regarding the solvency of American Classic Voyages at the time of certain prepetition actions, which were alleged by the Trustee of American Classic Voyages' estate to constitute preferences or fraudulent conveyances in the amount of $30,000,000. DSI’s Brian Calvert authored the expert report and testified as the Bank Group’s expert, and his analysis proved persuasive. The court ruled in the Bank Group’s favor, stating that it was persuaded, in part, by Mr. Calvert’s experience and expertise, particularly his extensive experience in performing valuations.
DSI Team: Brian Calvert, Brian Weepie, Yale Bogen, Fritz Reed & Matt Braun
Air Delivery & Freight
Financial Advisor to Creditors' Committee
Polar Air Cargo is an international air cargo carrier. DSI assisted the creditors' committee in the evaluation of the Debtor’s plan of reorganization and related causes of action. DSI was retained in anticipation of litigation and the need for expert testimony in a contested confirmation hearing. Through the efforts of DSI and counsel, negotiations among the committee, Debtor and counsel achieved a consensual plan of reorganization.
DSI Team: Joe Luzinski, Clare Pierce, Alan Omori, Yale Bogen & Brian Calvert
Public Sector
Litigation Support
DSI was hired by the San Francisco City Attorney's Office to evaluate the city's claim for damages associated with a major power blackout. City departments prepared their claims to be submitted to Pacific Gas & Electric. DSI reviewed and analyzed the claims, and discussed the methodology and calculations with the departments and the City Controller to support the claims, which were submitted to PG&E. DSI successfully negotiated a settlement of the claim.
DSI Team: Kyle Everett & Rose Jane Delarosa
Mortgage Broker & Loan Servicer
Post-Confirmation Trustee & Financial Advisor to Trustee
DSI, through Geoffrey L. Berman, is serving as the Trustee of USA Commercial Mortgage Liquidating Trust. USA Commercial Mortgage (USACM) was a Nevada mortgage broker and loan servicer that had defrauded lenders of the mortgages it serviced of nearly $500 million dollars. DSI staff assisted counsel investigating the extent of the fraud and transactions perpetrated by the former shareholders of the company. The investigation encompassed more than six years of transactions that USACM and its affiliates devised to turn USACM’s loan servicing operations into a massive Ponzi-like scheme. Lenders were assured receipt of regular interest and principal payments, even on non-performing or uncollectible loans, through the misallocation and/or commingling of available funds within the USACM group of affiliated companies. Recoveries to date exceed $40 million over the initial assets transferred to the Trust.
DSI Team: Geoff Berman, Clare Pierce, Matt Sorenson, Brian Weepie & Jennifer Adle
