Based upon a report by an examiner represented by Lowenstein Sandler that found evidence of "gross mismanagement of the estate and possible fraud,” U.S. Bankruptcy Judge David S. Jones of New York has granted a request by the Department of Justice’s United States Trustee Program to appoint a Chapter 11 trustee to take over the estate of bankrupt personal injury firm Munawar Law Group PLLC. The examiner’s report stated that the Munawar firm had improperly used COVID-19 relief funds, filed false tax returns and bankruptcy schedules, and made fraudulent or preferential transfers of more than $6 million.
Munawar Law Group filed for Chapter 11 bankruptcy protection on January 7, 2025. The U.S. Trustee initially asked for the case to be dismissed or converted to a liquidation because the debtor had "exhibited gross mismanagement by failing to account for significant post-petition revenue,” but it agreed to wait until the filing of the examiner’s report.
As reported by Law360, the examiner’s report found that "Munawar treated the debtor's bank accounts as his personal piggy banks.”
The Lowenstein team includes Eric Chafetz, Michael A. Kaplan and Christopher Dernbach.
About Lowenstein Sandler LLP
Lowenstein Sandler LLP is a national law firm with around 400 lawyers based in New York, Palo Alto, Roseland, Salt Lake City, San Francisco, Washington, D.C., and Wilmington. The firm represents leaders in virtually every sector of the global economy, with particular emphasis on investment funds, life sciences, and technology. Recognized for its entrepreneurial spirit and high standard of client service, the firm is committed to the interests of its clients, colleagues, and communities.
