Greg Schwegmann is a partner at Reid Collins & Tsai. Schwegmann regularly appears in federal and state courts and arbitrations across the country representing clients in high-stakes, complex commercial litigations, in cases involving financial fraud, securities matters, professional/fiduciary liability, and cross-border financial litigation. His clients include bankruptcy trustees, foreign liquidators, federal receivers, distressed corporations, and investors, among others.
Schwegmann often finds innovative and creative solutions to complex legal issues to maximize recoveries for his clients. For example, he led the team that won a landmark victory in the Seventh Circuit concerning the scope of section 546(e) of the Bankruptcy Code. The U.S. Supreme Court, in Merit Management Group v. FTI Consulting, affirmed the Seventh Circuit’s ruling, opening new avenues of recovery for bankruptcy trustees across the country.
Lawdragon Honors
Schwegmann received his J.D. from New York University School of Law and his B.A. in Mathematics and Philosophy from the University of Texas at Austin where he graduated with honors from the College of Liberal Arts and with special distinction in Philosophy. Between undergrad and law school, he served as a Peace Corps Volunteer for two years in Tanzania, East Africa.
Notable Representations:
- Lead counsel to the litigation trustee for a bankrupt racetrack and casino development company pursuing the recovery of tens of millions of dollars in fraudulent transfers to multiple entities. In pursuing these actions, Schwegmann won a landmark victory in the Seventh Circuit Court of Appeals on the scope of the §546(e) safe harbor, which is currently on appeal to the Supreme Court of the United States.
- Representation of Bankruptcy Trustee and Trustee of a Private Actions Trust pursuing the claims of over 400 victims of a Ponzi scheme against a national life insurance company for securities fraud and the negligent employment of the agents that perpetrated the scheme for over a decade.
- Representation of the Official Committee of Unsecured Creditors of Fresh & Easy, a large grocery company, in pursuing claims against its former insiders—including billionaire Ronald Burkle—for breach of fiduciary duty and fraudulent transfer of certain assets. The claims were settled for a $21.5 million cash payment and the release of $104 million of insider claims against the estate, thereby doubling the projected distributions to creditors.
- Representation of the new management of a so-called “Chinese reverse merger company” that ceased operations in 2012 after fraud and theft by prior management were discovered. This public company asserted multi-million dollar legal malpractice claims against its former outside counsel, which represented the company from the time it began trading in the U.S. until a new board of directors took control of the company. The case resulted in a confidential settlement. Schwegmann has also obtained several hundred million dollars in judgements against the Company’s former management and is continuing to pursue claims against a former director.
- Representation of the SEC Receiver appointed to recover assets in connection with the second-largest Ponzi scheme in Minnesota history in a $47.5 million fraudulent transfer claim against a futures commission merchant.
