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Morgan Drexen Bankruptcy Update for August 25, 2015

Written by Steve Rhode

As part of the public record, the bankruptcy trustee in the Morgan Drexen bankruptcy has just posted a very interesting update.

The document was filed on August 24, 2015 and here is what it says.

The Trustee states the Morgan Drexen business has been wound up and 15,000 letters were sent to “Affected Customers” notifying them of the facts surrounding the shutdown by the courts for illegal activity by Morgan Drexen. The letter contained information that is similar to what is now shared on MorganDrexen.com.

Letters were also sent to 160 creditors who Morgan Drexen was handling settlement accounts for/with.

The offices of Morgan Drexen were closed on July 31, 2015.

On August 4, 2015 an adversary action was filed against Walter Ledda by the Trustee. Ledda is due to file his answer to the complaint by September 4, 2015 but until then his assets have been frozen, above $75,000 for living expenses, which he must account for with the Trustee.

On August 12, 2015, David Walker, the former Chief Financial Officer, appeared and testified. You can read more about that, here.

There is a scheduled appearance of Walter Ledda on September 18, 2015 for him to testify.

The Trustee describes how action taken by Vincent Howard, Howard Law, and Williamson & Howard have “effected the Trustee’s ability to follow the Court’s directives. A copy of that report/document can be found here.

The full Trustee report can be found here.


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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