ILR EVP Harold Kim: Increased DOJ Oversight Can Keep Bankruptcy Trusts "Honest"

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October 31, 2018

U.S. Chamber Institute for Legal Reform Executive Vice President Harold Kim told the Associated Press that the U.S. Department of Justice’s (DOJ) increased oversight of asbestos bankruptcy trusts will “hopefully keep these trusts honest."

In the past two months, the DOJ has launched a civil investigation, opposed the creation of another trust over the lack of safeguards against fraud and abuse, and argued against the appointment of a lawyer they say was too conflicted to represent victims. Associate Attorney General Jesse Panuccio said the Department wants to see if “there is fraud happening out there that is cognizable under federal law” because of its “interest in fraud and consumer protection.”

The story also discusses a 2014 bankruptcy case involving Garlock Sealing Technologies, in which the judge found a “startling pattern of misrepresentation" in claims.