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Foley & Lardner Sued by DBSI Inc. Trustee

11/03/11

Foley & Lardner Sued By DBSI Inc. Trustee

Foley & Lardner was sued by a trustee involved in the Chapter 11 case of bankrupt real estate Investment Company DBSI Inc. He claimed that the perpetuated a classic Ponzi scheme that tricked investors of hundreds of millions of dollars. James Zazzali, the trustee for the DBSI estate litigation and private actions trust, filed the suit on Monday. He alleged that attorneys from Foley worked with DBSI principals to create fraudulent investment and tax structures to attract new investors. The suit also includes assertions of legal malpractice, professional negligence, fraud, aiding and abetting breaches of fiduciary duty, civil conspiracy, and the payment of fraudulent transfers.

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