FBI Investigating DVI Officers
Creditors have been asking for an examination of loans, personal payments, and other costs in the DVI bankruptcy filings. Recent fundings of leases 90 days before the filing have been reviewed, with brokers being asked to return commissions. The Federal Bureau of Investigation is also looking into the alleged criminal financial irregulators.
On May 31, United States District Judge Legrome Davis suspended all the civil lawsuits against former officers and directors of DVI Inc. for 120 days, "pending completion of the ongoing investigation" by the Justice Department.
Last week the U.S. Attorney's Office in Philadelphia had asked for the stay so the FBI could interview principals in the case before they were questioned under oath in the civil cases, the Philadelphia Inquirer reported.
"It is a case we are working with the U.S. Postal Service," Jerri Williams, an FBI special agent in Philadelphia said to Philly.com. Leasing News has reported on other cases by leasing
brokers, and also cases involving NorVergence and RW Professional, as Postal inspectors investigate fraud committed by mail.
The firm is in liquidation. It is the nation's 13th largest bankruptcy in 2003.
An examiner appointed by the Bankruptcy Court reported last year that the company hid bad loans on its books in "almost comical proportions," and used "desperate and illegal" methods to borrow money from its banks.
The examiner said Steven Garfinkel, the company's former chief financial officer, told him that the company pledged the same loans as collateral to multiple lenders.
The report said DVI's chief executive officer, Michael O'Hanlon, pressured the company to meet investors' expectations of growth.
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