A lawsuit against Holland & Knight LLP and partner William “Bill” Banowsky has been lodged by the bankruptcy trustee of the GWG Litigation Trust, alleging a multifaceted fraudulent scheme causing GWG Holdings Inc. significant financial loss exceeding $100 million. The trustee, Michael L. Goldberg, is pursuing a minimum of $148.4 million, covering damages and legal expenses. Accusations are directed at Holland & Knight and Banowsky for their alleged involvement in a criminal enterprise with Bradley K. Heppner, former board chairman, orchestrating financial diversions through entities like Highland Consolidated LP.
Banowsky is reportedly accused of concealing Heppner’s relationship with Highland Consolidated, enabling alleged fraudulent activity. It is further claimed within the lawsuit that Banowsky misrepresented key information in a February 2019 legal opinion, affecting stakeholder perceptions of Highland Consolidated’s control dynamics. The lawsuit lists multiple alleged infractions, including violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) and other misconduct.
For further details of the lawsuit and the extensive allegations surrounding the case, visit the detailed report.