I would also smell a rat as Trustee James Rigby says he does in this Mastro bankruptcy case. A 7,000-square-foot Medina waterfront mansion, purchased in 2006 for $15 million cash along with the $333 million in claims that unsecured creditors have filed would cause me to smell something wrong.
Trustee James Rigby smells a rat. He’s responsible for finding and liquidating Mastro’s assets, then distributing the proceeds to his creditors.
Rigby looks at the Mastros’ lifestyle in bankruptcy and suspects more of the same: that Mastro is hiding assets that rightfully belong to the banks and the individual investors most local, many Italian American like Mastro, many elderly who entrusted him with millions. SOURCE
The Mastro bankruptcy timeline from Sept. 30, 2008 to April 14, 2010
July 10, 2009: Columbia State Bank, First Sound Bank and Venture Bank file a petition to force Mastro into Chapter 7 bankruptcy, contending he owes them a total of $9.7 million and is not paying debts as they come due.
Sept. 9, 2009: Mastro files first financial statements with bankruptcy court, indicating liabilities exceed assets by more than $300 million.
March 3, 2010: The Office of the U.S. Trustee, a branch of the Justice Department, sues to block bankruptcy court from issuing a “discharge” order that would relieve Mastro of the obligation to repay his debts — the reason most people file for bankruptcy protection. U.S. Trustee contends Mastro has concealed assets and made false statements.
April 14, 2010: Mastro agrees not to seek discharge order. U.S. Trustee drops suit. SOURCE
Feds won’t talk about their investigation of Mastro
The U.S. Attorney’s Office is conducting an investigation of the former Seattle real-estate kingpin, but won’t talk about it.
When he first confirmed the government probe in February, Frush, a former federal prosecutor, characterized it as routine. Federal officials were almost required to look at Mastro, he said, given the magnitude of his creditors’ losses and allegations against him by state regulators. SOURCE