Liquidation Underway for 3 Companies of Steven Wymer : Courts: Chapter 7 petitions cite millions of dollars in liabilities--funds from clients that include the city of Orange.

The court-appointed receiver for indicted Irvine investment adviser Steven D. Wymer has begun liquidation proceedings against three Wymer companies in federal bankruptcy court here.

The Chapter 7 petitions, filed late last week, cite millions of dollars in liabilities--funds that a variety of clients including the cities of Orange and Torrance say the investment manager squandered instead of investing for them. In all, 10 California cities and the state of Iowa claim that Wymer owes them $113 million.

Wymer, 43, who was indicted in December on 30 federal felony charges of money laundering, mail fraud, securities fraud and obstruction of justice, has pleaded not guilty. His attorneys have said that Wymer may have lost the funds through bad investments but did not steal them.

Assets for the three firms, Institutional Treasury Management, Denman & Co. and Fund Administration Services, all of Irvine, include $367,000 in Institutional Treasury’s bank account and $35,000 in Fund Administration’s accounts, said Michael Glazer, attorney for receiver Robert E. Carlson.

The companies also have office equipment and furnishings that will bring something in a liquidation sale.

“But the total is really nothing when you hold it up to the millions in claims that are probably going to be filed” by Wymer’s municipal clients, said Carlson. He continues to act as a receiver until the bankruptcy court appoints a trustee.

Assistant U.S. Atty. Jean Kawahara said Monday that the bankruptcies should not have any bearing on the criminal case against Wymer. Wymer is free on a $650,000 bond while awaiting trial and, Kawahara said, is generally restricted to his Newport Beach neighborhood.

The U.S. attorney’s office has seized many of Wymer’s personal assets, including homes in Manhattan, Idaho and Newport Beach, 13 classic and luxury cars, and four boats. The property is being held by the government pending outcome of the trial, Kawahara said.