JRJR33 executives settle fraud with Trustee for $3.2 million
A $3.2 million settlement between the JRJR33 Trustee and several executives has been approved.
The JRJR33 bankruptcy Trustee alleged fraud against the executives last year.
In an adversary complaint filed on June 26th, the Trustee claims
exorbitant insider management fees and expenses destroyed any significant asset value of the debtors and their affiliates.
Aided by a hand-picked and ineffectual board, the Rochon defendants failed to protect the value of the Debtors’ sizable assets, causing significant financial injury to the Company and its creditors and stakeholders.
Whatever John R. Rochon ordered was followed largely and without question of meaningful resistance.
Such negligence, waste, inaction, and breach of fiduciary duty and loyalty form the basis for this lawsuit.
JRJR33’s bankruptcy saw the MLM companies Agel and Longaberger collapse.
As per the filed proposed settlement $3.2 million will be paid to the Trustee. Upon receipt, the Trustee will then ‘allocate the Settlement Payment equally between the bankruptcy estates.’
The settlement also bars any future related action against the executive defendants.
The proposed settlement was signed off on by attorneys representing Michael Bishop, William H. Randall, John P. Rochon (right), Donna Rochon, John P. Rochon Jr, Heidi Rochon Hafer.
The settlement also applies to corporate defendants JGB Collateral LLC, JGB Capital LP, JGB (Cayman) Port Ellen LTD and JGB Partners LP.
The court approved the proposed settlement on October 15th.