Network Firm News
NIXON PEABODY SECURES SETTLEMENT FOR VICTIMS OF INVESTMENT FRAUD
Kevin Fitzgerald of the Network firm Nixon Peabody LLP has completed a groundbreaking settlement on behalf of victims in the case of the U.S. Securities and Exchange Commission v. Bradford C. Bleidt, et al. Fitzgerald and his team, including attorneys Steven Fuller and Jeffrey Gilbreth, after asserting a series of innovative claims, worked with three broker-dealer firms with whom Bleidt had relationships to successfully fashion a universal settlement for the benefit of investors.
As the head of an investment firm, Bleidt defrauded clients out of more than $30 million. Bleidt put most of these funds to personal use, including the purchase of Boston radio station, WBIX.
In November 2004, the court approved a nomination by the U.S. Securities and Exchange Commission Boston District Office for Nixon Peabody partner, David A. Vicinanzo, to serve as the federal court appointed receiver. Following Vicinanzo's appointment as counsel to the receivership, Nixon Peabody’s Fitzgerald and Fuller successfully prosecuted these claims and ultimately negotiated and then administered a complex multi-party settlement that culminated this month in payments in excess of $6.3 million.
Other notable work in this case included efforts earlier this year by Fitzgerald and attorneys James Hood, David A. Vicinanzo, Maria Law and Frank Morrissey to successfully preserve the receivership’s interest in Boston radio station, WBIX. Nixon Peabody fashioned and obtained approval for another highly innovative transaction that returned the station to its original owner for value to the receivership totaling more than $9.5 million, discharging the debt incurred in the station’s purchase and netting the receivership excess proceeds of $1.5 million.
In a January 2006 order, Judge Nancy Gertner of the Massachusetts Federal District Court took note of these successes, acknowledging Nixon Peabody’s skillful and effective work on behalf of the receivership and the victims of the Bleidt fraud.