When James Sallah of Sallah Astarita & Cox, LLC was appointed the receiver for a software company that had been raided by the FBI it had nothing, but software. Rather than putting the company into bankruptcy, which would virtually ensure that the investors would receive nothing, Sallah used a little-known tool to transform those defrauded investors into shareholders of a new $11 million company.
Law360 has a detailed review of the transformation, and while there is no guarantee that the shareholders will recover anything, they now have a chance to do so.
