Golden Oaks judge lets receiver examine insider info allegations
Doyle Salewski will question 20 investors in October
A judge in the Golden Oaks rent-to-own bankruptcy case is allowing a receiver to examine a group of investors who may have had insider information.
The failed company owes more than $27 million to investors, tenants and contractors after falling apart in July.
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A group of 20 investors will now be questioned by receivership company Doyle Salewski to see if they were given "fraudulent preference" on their investments, allowing them to save themselves before the collapse.
"The majority of the mortgages were taken in the last few months while the boat was sinking, so it's unfair for some people to get a hold of a life jacket while other people drowned," said receiver Brian Doyle.
Investors 'cannibalizing' each other, lawyer says
Real estate sales representative Christopher Steeves has 18 mortgages in question totalling almost $700,000, the most out of that group of 20.
His lawyer David Debenham said it’s unfortunate investors are now going after each other.
"I think it's a real shame that the investors are cannibalizing each other, some people took steps to protect themselves and other people unfortunately didn’t, now they’re each really fighting over the carcass of what’s a dead body," he said.
"As a lawyer you feel like a vulture being part of this whole thing."
In total, 47 second and third mortgages are in question, a number valued at $2.2 million.
The receiver will start examining these investors in October, a process that will likely run until December.