Continental Bank – Grain Commodity as Collateral

Financial Institution
Loan Fraud

Grain Commodity as Collateral

A bank was stung by the realization that the collateral placed by a commodity broker had little substance. After preliminary inquiries, it became evident that trading records in the possession of one of the brokers were essential to the matter. However, they were not forthcoming and thereafter an application was made for an Anton-Pillar order.

I had been retained by Counsel and the idea of being a part of the invitation to search (via the Anton-Pillar order) was attractive, particularly given the level of case knowledge that I had already accumulated. But what happens if, after I have identified the documents during the search, a Judge rules against the order? I lose. In one swing it is strike three, and I am out of the case! I am legally tainted and can no longer act for my client. The documents are returned to the owner and my client needs to find a forensic accountant replacement.

The solution? Your client must retain another forensic accountant solely for the Anton-Pillar order in order to preserve your role. In other words, learn to share this experience.