Former bankruptcy trustee pleads guilty in LandAmerica case | Crime News
“You have a whole troika of lawyers here today,” Gibney told Matson. The case is being pursued by Katherine Lee Martin and Kevin S. Elliker, assistant US prosecutors.
In 2019, Matson made false statements regarding allegations he embezzled funds as a court-appointed trustee in the LandAmerica Financial Group bankruptcy, court documents show.
“A federal investigation into these allegations uncovered several cases of Matson’s embezzlement of the LandAmerica Trust between 2015 and 2018, totaling approximately $ 800,000 in embezzled funds,” prosecutors said.
The U.S. Attorney’s Office also said Matson manipulated LandAmerica’s post-bankruptcy liquidation period budget so that he could divert residual funds to himself and others after the bankruptcy closed, when it would no longer be subject to the scrutiny of creditors in bankruptcy court.
Matson embezzled over $ 3.2 million for personal payments to himself and others, depleting the trust account more than two years before the liquidation period ended.
The investigation also revealed an unrelated case of Matson embezzling $ 23,000 in 2016 from the estate of Forefront Capital, a former futures broker for whom Matson served as receiver and named debtor.
In total, between 2015 and 2019, Matson falsely obtained more than $ 4 million in bankruptcy-related assets, prosecutors said.