Brothers' financial firm failure shocks creditors

Print
Email
|

Associated Press

Posted on November 26, 2012 at 11:23 AM

EUGENE, Ore. (AP) — A financial firm founded by a Eugene man in the 1970s was handed off to his two sons. Now, Fred Holcomb's progeny find themselves in hot water.

First, state regulators ordered brothers Michael and Gary Holcomb to stop selling "high-risk" investments.

Then, the brothers filed for Chapter 11 bankruptcy. They said they owed more than $48 million in liabilities and had assets of just $5 million.

Now, bankruptcy trustee Thomas Huntsberger has filed a lawsuit in Lane County Circuit Court alleging "unjust enrichment" against the Holcomb Family Limited Partnership, which is controlled by the brothers.

The Eugene Register-Guard reports he's also seeking to tap the partnership's stock in a bank and make the proceeds available to the bankruptcy estate.

___

Information from: The Register-Guard, http://www.registerguard.com

Print
Email
|