September 25, 1994
Regarding the lawsuit against the present TMI management ("A Hard Investment Lesson," Sept. 19), my wife and I have been longtime investors in Teachers Management & Investment Corp. We realized even in the heady days of real estate offerings that real estate, regardless of the market, is by its very nature the least liquid of all investments. Also along with high profits and some tax write-offs there will be losses. It should be obvious to investors that 100% investment of one's retirement money into real estate is not a balanced investment portfolio.
January 6, 1988 |
For the last two years, Teachers Management & Investment Corp. in Newport Beach had been seeking approval to pay cash awards to the four finalists in the annual competition for teacher of the year. The state Department of Education, which selects the top teacher each November, had not been opposed to the idea--just slow to allow it. Then, when the agency finally gave approval to the company last fall, TMI was caught by surprise.
December 9, 1997 |
An Orange County judge has found that KPMG Peat Marwick has inadequate insurance to pay a potential judgment in a $100-million lawsuit. The finding could impact hundreds of other cases 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 funds to go around.
January 17, 1997 |
A law firm that long advised Teachers Management & Investment Corp. has agreed to pay $2.2 million to settle a lawsuit brought by investors who allege they were defrauded by the Newport Beach company. The agreement with Bruck & Perry, which also is based in Newport Beach, was revealed in an Orange County Superior Court hearing Thursday. The agreement includes law firm partner David J. Perry, who also was named as a defendant.
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.
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.