Hearing Delayed on Receiver for Teachers Investment Firm; Ciba Buys Plane Parts Maker
A judge Thursday postponed a hearing expected to decided if a receiver should take over Teachers Management & Investment Corp., the troubled Newport Beach firm that raised $1 billion from California educators.
Orange County Superior Court Judge Francisco F. Firmat will rule Monday on whether to appoint a receiver.
A lawsuit filed in August by four teachers alleges that the company is insolvent and seeks appointment of a receiver for any remaining assets. The teachers also allege that the company lost $100 million through fraud.
More than 60,000 California teachers invested with TMI, many of them putting money into partnerships to buy undeveloped land.
TMI owners Maurice Shuman and James Martin deny any wrongdoing and say that the value of the company’s assets declined because of the real estate downturn.
Dorene Wolf, a senior lawyer with the state Department of Corporations, has strongly endorsed Dennis B. Schmucker, a San Diego bankruptcy expert, to be the court-appointed receiver for TMI.
The Department of Corporations, which is responsible for overseeing the sales of securities and limited partnerships in California, spent two years investigating complaints about TMI in the mid-1980s but did not take any action.