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While not federal equity receiverships, I participated in state receiverships and federal bankruptcies. Below are a couple of these cases.
Equity Receivership Over Jogani, et al v Jogani, et al (Sup. Crt. of CA (Los Angeles) BC29055f3) Aaron J. Kudla, J.D., C.P.A., of Dyversis, LLC, Mr. Kudla is currently serving as equity receivership appointment by the Superior Court of California (Los Angeles) (Jogani v. Jogani, et al, BC290553) over a $10B judgment (pending appeal) with primary assets of 164 apartment complexes in California, Arizona, Nevada and Texas. The underlying litigation lasted almost 20 years, which is the longest litigation in this Court’s history, and included 5 highly litigious brothers who were parties to the litigation in addition to their entities (4 brothers were plaintiffs and 1 defendant). The apartment complexes range in size from small 8-unit apartments to larger 492-unit apartments. In addition to real estate assets, the Receivership assets included investment accounts totaling approximately $600M. Ms. Chen and Mr. Josh Kudla lead the Receiver’s accounting team and supervise four Senior Accountants (on the Receiver’s staff) and a Clerk, and an entire accounting department in the Receivership entities (JKRSI). Moreover, Ms. Chen and Mr. Josh Kudla lead the review of accounting and financials from third-party property managers, vendors and outside certified public accountants, aand provideaccounting services related to monthly property financials, Receivership financials, annual HUD audit of 71 properties and a large array of forensic accounting tasks.
SCI Bankruptcy Liquidating Trust (SCI Real Estate Investments, LLC, and Secured California Investments, Inc. - Debtors), CH 11, US Bankruptcy Court, Central District of California, Case Nos. 2:11-Bk-15975-PC and 2:00-bk-15987-BR.
While employed at Trigild, Ms. Chen advised William J. Hoffman of Trigild, Inc., who was the Liquidating Trustee of The SCI Bankruptcy Liquidating Trust. The Liquidating Trust was formed in 2011 and includes entities that were operated as a tenants-in-common sponsorship group. The core SCI entities (SCI Real Estate Investments, LLC, Secured California Investments, Inc., and entities wholly owed by SCI) would solicit investors for large multi-family and retail real estate projects ($10M - $125M) in more than 20 states. Based on the investors capital contributions, the investor would be a tenant-in-common owning a direct interest in the property (investment of $1M or more), or the investor would be a co-owner in a limited liability entity (investment of less than $1M).
The structure of the TIC sponsorship was very complex and included ownership interests, management interests, and transaction fees. The real estate portfolio included more than 45 multi-family and retail properties with an aggregate value of more than $1.5B.
The Liquidating Trust’s objectives included: (a) accounting for all assets, including membership interests in multi-member LLCs, membership interests in disregarded entities, direct ownership in properties, (b) manage ongoing properties, (c) determine loan status for each property, (d) market and sale all assets before loans mature, (e) manage all SCI related entities, and (f) claims administration.
Ms. Chen provided accounting services for the Liquidating Trustee’s team and was responsible for advising on financial due diligence efforts, tax filings, and account setup.
The Dyversis Group is a fiduciary and asset management firm with a focus on taking over operating companies with real estate assets, including office, retail, multi-family, student housing, hotel and golf course through Federal and State Court appointments (and also private engagements). We will serve as receivers in cases where a trusted fiduciary is needed to protect and maximize the value of real estate assets by efficiently resolving a wide array of issues operating companies encounter, including mismanagement, ownership disputes, cash flow issues, financial insolvency, accounting issues and illegal activity.
Ms. Chen is a Certified Public Accountant (CPA) currently working with the Dyversis Group, where she co-leads the Receiver’s accounting team overseeing a $10 billion portfolio (Jogani v. Jogani). She previously spent 20 years with Trigild Corporation, a firm specializing in the management of distressed assets, including hotels, restaurants, quick-service restaurants (QSRs), gas stations, truck stops, multifamily residential properties, and commercial real estate. At Trigild, she held several leadership roles, including Vice President of Accounting and Corporate and Property Controller. Her responsibilities encompassed treasury management, risk management, payroll, financial reporting, and coordination of various tax matters, including sales tax, property tax, transient occupancy tax, and gross receipts tax. Ms. Chen earned a B.A. in Economics from UCLA and obtained her CPA while working at Ernst & Young.
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