October 20, 1995 |
The court-appointed receiver for 30 partnerships that once made up Teachers Management & Investment Corp. has sued the financially troubled company and its accountants and lawyers for $50 million. The lawsuit filed by Dennis B. Schmucker, the receiver who controls 30 of the Newport Beach investment company's limited partnerships, accuses TMI of fraud and its professional advisers of negligence and breach of fiduciary duties.
January 21, 1998 |
A lawsuit that promised to put the ethics of the accounting profession on trial was settled for $14 million Tuesday, ending nearly four years of litigation but leaving some investors less than satisfied. Just before a jury was to be selected, Big Six accounting firm KPMG Peat Marwick agreed to pay nearly $10 million and Comerica Bank-California agreed to pay more then $4 million to end all litigation stemming from the 1994 collapse of Teachers Management & Investment Corp.
December 9, 1997 |
An Orange County judge has found that KPMG Peat Marwick LLP doesn't have adequate insurance to pay a potential judgment in a $100 million lawsuit. The finding could affect hundreds of other cases nationwide against Peat Marwick--including a $3-billion suit against the accounting firm stemming from Orange County's bankruptcy. Plaintiffs' lawyers say they are concerned that there won't be enough to go around.
February 13, 1996 |
The state attorney general's criminal division has been investigating the operations of the troubled Teachers Management & Investment Corp., which lost more than $100 million in investor money. The criminal investigation, confirmed by authorities Monday, continues as investors and a court-appointed receiver pursue civil fraud allegations against the company, its principals and its advisors.
January 27, 1996 |
Investors statewide who lost $100 million in Teachers Management & Investment Corp. won important courtroom battles this week when a judge refused to throw out allegations against KPMG Peat Marwick accountants and an Orange County law firm. Orange County Superior Court Judge Francisco F. Firmat refused to dismiss allegations of fraud, conspiracy, negligence and other wrongdoing against Peat Marwick, which annually audited real estate partnerships for the investors.
September 18, 1994 |
When Maurice B. Shuman and James R. Martin bought Teachers Management & Investment Corp. in 1987, its prosperity seemed assured. The Newport Beach company owned $700 million in California real estate and had on its payroll hundreds of teachers who had invested in TMI themselves, then signed on to moonlight as sales agents for its limited partnerships.
April 25, 1996 |
A law firm once retained by troubled Teachers Management & Investment Corp. said it quit representing the company after only six days because the operators concealed evidence that "could give rise to criminal liability." The Irvine office of Reavis & Pogue made the allegation in responding to a lawsuit filed by TMI operators Maurice B. Shuman and James R. Martin. Jones, Day accused the pair of concealing "fraudulent conduct" from the lawyers.
October 4, 1994 |
Saying that some money was improperly transferred without investors' knowledge, a judge decided Monday that the remaining retirement funds invested with Teachers Management & Investment Corp. may need protection from current management but stopped short of appointing a receiver at the Newport Beach financial company. TMI, which has raised as much as $1 billion from 60,000 California educators since 1968, was sued Aug.
September 14, 1995 |
Financially troubled Teachers Management & Investment Corp. and its two managers agreed Wednesday to pay investors $4 million in cash to settle accusations that they misappropriated real estate partnership funds and caused more than $200 million in losses. The settlement, which is subject to court approval, stems from a lawsuit that investors filed last year against the Newport Beach investment company, set up to help teachers throughout the state save money for retirement.
March 5, 1996 |
Teachers Management & Investment Corp., which is under criminal investigation over the loss of more than $100 million in teachers' retirement funds, is trying to prevent investors from cooperating with authorities. As part of the company's effort to settle a civil fraud lawsuit, TMI has proposed that the 20,000 teacher-investors statewide stop voluntarily cooperating with state and federal authorities in the criminal investigation.