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Trustee Sues 55 Defrauded McLean Investors
Money To Be Divided Equally Among Investors, Bankruptcy Trustee Says
POSTED: 11:11 am CDT May 9,
2008
UPDATED: 3:52 pm CDT May 9,
2008
MURFREESBORO, Tenn. -- Wayne Allen lost his life savings when he trusted his money to a well-known Murfreesboro music patron who turned out to be running a Ponzi scheme.But because Allen did receive a return on some of his money, the trustee handling Bob McLean's bankrupt estate is now suing him to get it back.So far, trustee Bob Waldschmidt has sued 55 investors seeking $11.4 million from them."There are massive inequities between the amount of repayments received by some vs. the lack of repayments received by others," Waldschmidt said in a statement. "Equitably, all payments should be returned to 'one pot' and distributed 'fairly,' on a pro-rata basis, to all those who lost money."
There are more than 130 claims totaling $67 million filed against McLean's estate.But Allen told Murfreesboro newspaper The Daily News Journal he intends to fight the lawsuit."I'm not going to hand over any money," he said. "I feel like what (the trustee) is doing is 100 percent wrong."Allen said Waldschmidt should deduct his interest payments from the amount he is due. Instead, he said, the trustee is eating up any money he might collect with attorney's fees.Attorney Bill Norton represents investors Fred Goad and Warren McPherson, who also intend to fight the suits."We don't think there's any liability," he said. "They didn't have any idea this was anything illegal."McLean used about 60 percent of the money from new investors to pay back old investors in a classic Ponzi scheme, Waldschmidt has said. But the rest went to his personal mortgages, banks, credit cards, family members, personal expenses and charities.He was a major donor to his alma mater, Middle Tennessee State University, which named its music school after him, and his generous donations to the Country Music Hall of Fame and Museum enabled it to buy the famed Mother Maybelle Carter's guitar and Bill Monroe's mandolin, as well as two Johnny Cash guitars.Waldschmidt has been seeking a return of those donations as well.McLean committed suicide last year after investors filed an involuntary bankruptcy suit against him.
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- January 3, 2008: Country HOF Joins Suit Against Dead Investor
- October 22, 2007: Philanthropist Auction Brings In $96,000
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