In a recent legal development, Boies Schiller Flexner LLP is facing a lawsuit to return approximately $653,000 to the estate of exiled Chinese businessman Guo Wengui. The claim, initiated by a court-appointed bankruptcy trustee, alleges that the legal fees were part of a fraudulent transfer devised by Guo. The fees were originally ordered to be paid to Boies Schiller following an arbitration award in a case involving loans owed to one of Guo’s sizeable creditors, the Pacific Alliance Asia Opportunity Fund LP.
Rather than settling the debt from his own assets, Guo reportedly directed the payment to be made from a shell entity known as Golden Spring Ltd. Trustee Luc A. Despins articulated these claims in a complaint filed on August 30 in the US Bankruptcy Court.
This case represents a broader effort by the trustee to track down other transfers potentially made to evade creditors, thereby ensuring that all funds rightfully belong to Guo’s estate and, ultimately, to the creditors involved.
For further details on this evolving story, you can refer to the full article provided by Bloomberg Law.