Receiverships

Our team has significant experience with receiverships arising from enforcement actions brought by the Securities and Exchange Commission, Federal Trade Commission, U.S. Attorney’s Offices, and other federal agencies. We also serve as and represent commercial, statutory and equity receivers in state court.  

Understanding that a receivership may require immediate action across multiple fronts, we provide a range of services, helping to identify, secure, preserve, and recover receivership assets; assume control of business operations; investigate financial activity; administer claims; pursue litigation; and develop strategies for distributing recovered funds. We regularly collaborate with forensic accountants, digital forensic specialists, financial advisers, and other professionals to address the legal, financial, technological, and operational demands of the receivership.  

Comprehensive Receivership Experience 

Clark Hill’s multidisciplinary team assists receivers with matters including: 

• Seeking, structuring, and implementing receivership orders 

• Taking control of businesses, financial accounts, records, websites, telephone numbers, real estate, and other assets 

• Tracing, securing, marshalling, and liquidating domestic and international assets 

• Investigating fraud, transfers, business operations, and financial activity 

• Working with forensic accountants and digital forensic professionals 

• Managing ongoing business operations, employees, payroll, taxes, insurance, vendors, and regulatory obligations 

• Evaluating creditor, investor, consumer, and other stakeholder claims 

• Pursuing fraudulent and voidable transfer, breach of fiduciary duty, professional liability, contract, and other recovery claims 

• Defending receivership entities and assets against litigation and competing claims 

• Addressing cross-border assets, transactions, and jurisdictional issues 

• Communicating with courts, government agencies, investors, consumers, creditors, and other interested parties 

• Developing court-approved claims, distribution, liquidation, and wind-down plans 

Experience in Complex Enforcement Matters 

Clark Hill attorneys have served as receivers and receivers’ counsel in matters involving alleged Ponzi and investment schemes, securities and investment advisory fraud, deceptive consumer practices, unlawful debt collection, fraudulent telemarketing, payment processing, and other complex conduct. Our experience includes matters involving extensive corporate structures, substantial transaction volumes, assets located in multiple jurisdictions, and parallel civil or criminal proceedings.  

Our team has pursued recoveries from company insiders, financial professionals, auditors, fund administrators, investors who received excess distributions, and other recipients of allegedly fraudulent or voidable transfers. We have also handled jurisdictional challenges, the recovery of funds held overseas, court-approved asset sales, claims administration, and the distribution of recovered assets.  

A Coordinated, Multidisciplinary Approach 

Receiverships frequently extend well beyond everyday business operations or traditional litigation and may involve corporate governance, financial services, real estate, employment, tax, cybersecurity, privacy, regulatory compliance, insolvency, and cross-border considerations. Clark Hill brings together attorneys across these disciplines to help receivers make informed decisions, respond efficiently to urgent issues, and fulfill their obligations to the court. 

From the initial appointment through investigation, asset recovery, claims resolution, distribution, and final discharge, we provide coordinated receiver service and counsel designed to preserve value, promote transparency, and advance the objectives of the receivership. 

Representative Matters 

• Served as court-appointed receiver in an SEC enforcement action involving an alleged $130 million investment fraud, securing and managing domestic and overseas assets and overseeing related litigation.
• Served as court-appointed receiver in an FTC action involving an allegedly deceptive AI-powered e-commerce business opportunity, assuming control of operations and assets and implementing a court-approved wind-down and distribution plan.
• Represented a federal receiver in an action involving a payment processor accused of facilitating fraudulent telemarketing, recovering more than $1 million for consumer restitution and helping uncover information that led to additional government recoveries.
• Served as receiver and lead counsel in an SEC action involving a $68 million Ponzi scheme and $1.6 billion in transactions, tracing and liquidating assets across multiple entities and jurisdictions and pursuing recovery claims.
• Represented a receiver in an SEC action involving a decade-long investment fraud, recovering approximately $31 million and achieving a cumulative recovery rate exceeding 80% of victim losses.
• Represented a defendant in a federal enforcement action involving allegations that assets were concealed overseas, overseeing forensic analysis that resolved the government’s and fiduciary’s concerns.
• Represented a court-appointed receiver in an SEC investment advisory fraud action involving more than $60 million in investor losses, obtaining settlements and judgments and repatriating funds held overseas.
• Represented a court-appointed receiver in ancillary litigation arising from an SEC investment advisory fraud action, obtaining seven-figure judgments against recipients of alleged fraudulent and voidable transfers.
• Served as lead counsel for a receiver in litigation arising from an SEC action against a Ponzi-scheme operator, including fraudulent transfer and breach of fiduciary duty claims.
• Served as receiver and lead counsel in an FTC action involving allegedly fraudulent technical support services sold to tens of thousands of consumers, taking control of operations and preserving receivership assets.
• Served as receiver and lead counsel in an FTC debt collection action involving more than $8 million collected through unlawful practices, halting operations, managing business obligations, addressing claims, and maximizing receivership assets.
• Assisted a Delaware Chancery Court-appointed receiver in collecting funds to satisfy a seven-figure judgment and conclude the receivership.
• Served as interim monitor of an affordable housing cooperative during a board dispute, overseeing the matter until the parties reached a tentative settlement and the court ended the monitorship.
• Represented a receiver in an FTC action involving fraudulent credit card telemarketing, securing a settlement of more than $7.5 million that provided nearly full restitution to victims.