McLean trustee wants instruments returned

Wednesday, August 13, 2008 at 2:33am
Bill Monroe's mandolin is one of a handful of items the late Robert McLean's trustee is suing to have returned.

Bob Waldschmidt, the trustee administering the bankruptcy of the late Robert McLean, has turned his sights on the Country Music Hall of Fame.

After suing more than 50 of McLean’s victims back in May seeking to recover whatever returns they may have received, Waldschmidt yesterday filed a motion for summary judgment against the local museum.

The filing seeks to recover two Johnny Cash guitars, a guitar belonging to Mother Maybelle Carter, and Bill Monroe’s mandolin, which McLean bought for more than $1.5 million before donating them to museum.

With much the same argument used against McLean’s victims in May, Waldschmidt argues that, since under the law the perpetrator of a Ponzi scheme is declared insolvent from the scheme’s inception, all conveyances made during the running of the scheme are considered fraudulent — and therefore, Waldschmidt argues, recoverable.

“These [gifts] were part of the Ponzi scheme because they were made with money derived directly from the fraudulent activity,” the filing states. “Therefore, recovery under actual fraud is appropriate. While the Museum may have acted in good faith, it did not give value in return for the transfers.”

Filed under: City Business
By: dgallent on 12/31/69 at 6:00

BTW....the trustee gets a commission on whatever he recovers.................I think it is about 20%............

By: RTungsten on 12/31/69 at 6:00

Weak sauce.