In California’s East Bay, Efforts By Bankruptcy Trustee To Collect Money Angers Creditors
A number of investors who lost money when trusting East Bay investment executive Francis "Bill" Reimers to make investments for them are angered by the decision of a federal trustee to get money from them as part of the bankrupty proceedings involving Reimers and his companies. At least 20 individuals say they collectively lost $10 million dollars in investments because of Reimers. Yet bankrupty trustee John Kendall may have grounds to collect payment from them for the money that Reimers owes because these investors became creditors the moment Reimers filed for bankruptcy. The trustee has claimed in court records that the transfers of money up to one year prior to Reimers filing bankruptcy were "preferential" or "fraudulent."
Attorneys for Kendall have filed complaints asking for a combined total of $5 million from at least 36 parties. 30 of these parties are individual investors. Six of them are companies. The trustee is demanding about $828,000 from one local Benicia investor.The trustee is also demanding $693,000 from American Express Credit, $258,000 from First USA Bank, $58,000 from Bank of America, $16,000 from MBNA America, and $6,200 from Banc One Credit Card.
Reimers had filed for involuntary bankruptcy.
There are three types of trustees in bankruptcy cases.
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