Veteran Receiver Tackles Complex Case
Richard M Kipperman, President of Corporate Management Inc., has served as a Panel Trustee in the Southern District of California for over 30 years. He has extensive bankruptcy experience having worked on over 40,000 cases. He has also held numerous fiduciary appointments that include state and federal court receiver, Chapter 11 trustee, examiner, litigation trustee, special master, referee and provisional director. Kipperman is well-regarded for his unparalleled expertise, resourcefulness and extensive network of advisors.
Kipperman serves as the court-appointed receiver in a $200 million matter involving a California charter school’s alleged misappropriation of public funds. With 19 facilities throughout the state, the school’s operators were accused of falsely enrolling thousands of students online and siphoning the money through the schools for services they did not provide leading to criminal charges against them including conspiracy, misappropriation of public funds, paying for student information and conflict of interest.
After determining that the schools needed to be shut down, Kipperman began the delicate process of untangling the 25 separate entities with over 2,500 total creditors. Further complicating the matter, each of these entities had different bank accounts and creditor claims. As a long-term Stretto Trustee, Kipperman engaged the company’s Client Services Team for case-management and banking-services support on this matter.
Streamlined Banking Solution Simplifies Case Management
Stretto understands government-led investigations of fraud, money laundering and other types of criminal activity pose specific administrative challenges when it comes to creating bank accounts, recovering assets, identifying creditors, and navigating the claims-reconciliation process.
Recognizing both the sensitivity and urgency necessary to resolve this case, Stretto worked closely with Kipperman to outline a multi-faceted solution that met UST regulations which included each individual school establishing its own segregated account allowing accurate payment and disbursement tracking.
Leveraging the company’s national network of banking partners, Stretto’s Banking Services Team effectively managed KYC and other account-opening requirements to quickly create over 100 unique bank accounts – with two money markets per account – for the 25 separate cases. These accounts were opened across four financial institutions ensuring limited exposure for each bank.
Stretto’s proprietary software, Trustee Suite, was instrumental in facilitating claims processing and reconciliation for wage and disputed claims. Relying on their expert case-administration capabilities, our Client Services Team assisted with customizing document-management structures and preparing UST reports.
Stretto provides innovative solutions and streamlined workflows so Kipperman can focus on the more substantive aspects of this matter. In administering this notable case, Kipperman also exposed loopholes in how California funds schools leading to critical examination and needed reform.