US Fidelis Financier Targeted In Creditor Lawsuit
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ST. LOUIS (KMOX)-A lawsuit aimed at helping ripped-off customers and other creditors get a bigger share of the US Fidelis bankruptcy estate, has been filed in federal court.
Creditors committee attorney David Warfield filed the suit against Chicago-based Mepco Finance Corporation, which financed US Fidelis and is its largest creditor, seeking to keep it from receiving funds from the estate.
Warfield contends that Mepco had inside information given to them by an US Fidelis employee. He tells KMOX News, “We believe that Mepco knew about many of the illegal marketing techniques and products, and problems with the products that US Fidelis was selling and if it didn’t know about it we think it certainly should have known about it.”
Warfield says when the final assets are sold there should be about $25 million to be distributed among creditors. Court filings show Mepco is claiming $57 million in losses.
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