Probe Into Alleged Overbilling
From CNNMoney.com:
L.Tersigni Probe Alleges Overbilling
L.Tersigni Probe Says Overbilling by Firm Could Reach $10 Million
March 27, 2008: 05:49 PM EST
NEW YORK (Associated Press) - A court-ordered probe of L. Tersigni Consulting, an adviser in several high-profile bankruptcy cases, has found evidence that the firm's now-deceased founder defrauded companies out of millions of dollars through overbilling.
In a report filed Wednesday with the U.S. Bankruptcy Court in Bridgeport, Conn., the investigator said overbilling by Loreto Tersigni caused "significant financial damage" to companies that were in bankruptcy because of asbestos-related liabilities. The companies included Federal Mogul Corp. and W.R. Grace & Co.
The investigator, Hugh Ray of the Andrews Kurth law firm in New York, said the Tersigni firm's bills were padded by as much as 23 percent between 2002 and March 2007. He estimated companies could have overpaid between $5.5 million and $10.3 million.
"These actions injured creditors by harming the ability of the company to continue its operations, thereby resulting in a complete liquidation and further loss," Ray said in the report.
Anthony Tersigni, a lawyer who represents Loreto Tersigni's estate and his wife, Nancy, on Thursday denied that Loreto Tersigni defrauded the companies. Anthony Tersigni's firm also represented L. Tersigni before it filed for bankruptcy in November.
"These are allegations," he said in an interview. "If these claims are asserted we intend to vigorously oppose them, and we believe there are very strong defenses."
The Tersigni firm was an adviser to creditors who were pressing claims against bankrupt companies for asbestos-related injuries. Although the firm worked for the creditors, the companies were paying the bills.
The firm, founded in 2001, earned $45 million in gross revenue over its six-year lifespan, according to the report. During that time, Loreto Tersigni pocketed about 65 percent of that money, or nearly $30 million, as salary, 401(k) contributions and year-end profit distributions.
L.Tersigni Probe Alleges Overbilling
L.Tersigni Probe Says Overbilling by Firm Could Reach $10 Million
March 27, 2008: 05:49 PM EST
NEW YORK (Associated Press) - A court-ordered probe of L. Tersigni Consulting, an adviser in several high-profile bankruptcy cases, has found evidence that the firm's now-deceased founder defrauded companies out of millions of dollars through overbilling.
In a report filed Wednesday with the U.S. Bankruptcy Court in Bridgeport, Conn., the investigator said overbilling by Loreto Tersigni caused "significant financial damage" to companies that were in bankruptcy because of asbestos-related liabilities. The companies included Federal Mogul Corp. and W.R. Grace & Co.
The investigator, Hugh Ray of the Andrews Kurth law firm in New York, said the Tersigni firm's bills were padded by as much as 23 percent between 2002 and March 2007. He estimated companies could have overpaid between $5.5 million and $10.3 million.
"These actions injured creditors by harming the ability of the company to continue its operations, thereby resulting in a complete liquidation and further loss," Ray said in the report.
Anthony Tersigni, a lawyer who represents Loreto Tersigni's estate and his wife, Nancy, on Thursday denied that Loreto Tersigni defrauded the companies. Anthony Tersigni's firm also represented L. Tersigni before it filed for bankruptcy in November.
"These are allegations," he said in an interview. "If these claims are asserted we intend to vigorously oppose them, and we believe there are very strong defenses."
The Tersigni firm was an adviser to creditors who were pressing claims against bankrupt companies for asbestos-related injuries. Although the firm worked for the creditors, the companies were paying the bills.
The firm, founded in 2001, earned $45 million in gross revenue over its six-year lifespan, according to the report. During that time, Loreto Tersigni pocketed about 65 percent of that money, or nearly $30 million, as salary, 401(k) contributions and year-end profit distributions.
Labels: Asbestos
posted by David Stone | 3:13 PM
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