Bankruptcy Fraud
Family on Family Crime

As Donna Sturman waits for the New York U.S. Trustee to provide justice, a bankruptcy trustee has kept her brothers' bankruptcy case open since 1989, billing it $5 million and is seeking another $2 million.

Donna says her brothers stole her inheritance and now the bankruptcy trustee is stealing it under the guise of administering the case.

 

 

Sturman's Evidence

The following is Bankruptcy fraud in Southern District Of New York. It has rendered me homeless, penniless, and bankrupt for exposing a fraud.

Submitted by Donna Sturman

 

Pending litigation is as follows:

Donna Sturman v. Chase Manhattan Bank (Southern District of New York Bankruptcy Court) Adversary Proceeding No. 98-9435A)

Donna Sturman v. Marc Stuart Goldberg Trustee for the Estates of Howard, Bruce Wayne Sturman.

(Southern District of New York Bankruptcy Court Adversary Proceeding No. 99/8076A)
MARC STUART GOLDBERG, BANKRUPTCY TRUSTEE OF THE ESTATES OF WAYNE STURMAN, BRUCE STURMAN AND HOWARD P. STURMAN vs JOSEPH WARREN, AS EXECUTOR OF THE LAST WILL AND TESTAMENT OF MURIEL STURMAN, DECEASED, AND DONNA A. STURMAN,
Bankruptcy Case: Adv. Pro. No. 98-9332A

1. The litigation against the Trustee and Chase was filed by the law firms of Stewart Occhipinti & Makow, LLP. Charles A. Stewart, III Esq. and Wolf Haldenstein Adler Freeman & Herz LLP Helen Davis Chaitman, Esq. Philip Guarino Esq. on my behalf.

When a previous law firm (Pollack & Greene) got judgment against me for fees they filed an Involuntary Bankruptcy proceeding against me in April 2002

Even though, I nor any of my counsel received notice, Judge Beatty (S.D.N.Y.B.C.) entered orders for relief against me approximately 25 days later.

Chaitman had promised me that she and Phil Guarino would prepare a motion to remove the reference from Judge beatty since January 2002.

On May 30, 2002, they informed me that they were now my creditors, would not file motion to remove reference, (they did fax me the motion) and that they could no longer represent me.

They also refused to contest the Involuntary. I had no idea at the time they were leaving the firm. Eleanor Healy, was Chaitman's secretary and is very knowledgeable about my situation.

 

2. My brothers Howard Sturman, Bruce Sturman Wayne Sturman and the accountant, Jerry Schwartz, were all convicted. case is:

United States District Court Southern District of New York
USA v Schwartz, Howard Sturman Bruce Sturman Wayne Sturman
Hon. Barbara S. Jones
96-CR 318 CR-96-657 (ADS)

 

3. I have a malpractice lawsuit pending entitled:

Donna Sturman AKA Donna Sturman Butler v. Milbank, Tweed Hadley McCloy New York State Supreme Court
Index No. 106948/94

Some of the lawyers that represented me there were the same attorneys that were involved in the Bucyrus Erie Bankruptcy conflict of interest case. They are John Gellene, Toni Lichstein, Steven Blauner. Attorneys that worked on my cases and that are no longer at the firm are Flora Schnall, Melanie Cykanowski, Deborah Hochman, Nicolas Tanelli, David Gelfand.

 

4. A brief chronology is as follows:

I hired Milbank in 1986 because my brothers were using properties and my parents' estates for their own personal use.

My father died suddenly in July 1973 , My mother died in April 1980 -- both estates have never been closed. My brothers gave me $3,000 a month from a partnership and excluded me from the all information about businesses.

In June, after learning that my brothers were in the process of selling properties without my knowledge or consent, Milbank filed a summons and complaint on my behalf against my three brothers.

During discovery, Milbank learned of loans being made to H. Development Corp. from Manufacturers Hanover Trust (became chemical Bank in 1992 , then Chase Manhattan Bank, and now JP Morgan Chase). These loans were made to the corporation for my brothers own personal use and to fund margin calls.

When Judge ordered Bank to comply with more discovery prior to September 1989, Manufacturers filed an Involuntary bankruptcy against my brothers. I was not informed that Milbank represented Manufacturers in other matters until November 11, 1989. At that time Milbank partner, Toni Lichtstein, wrote to me that I "should only seek advice from other counsel for, any possible claims I might have against the Bank."

The involuntary has stayed all my litigation and discovery since August 4, 1989. Milbank continued to represent me until October 1993.

My brothers attorneys were Stroock, Stroock & Lavan. They were also attorneys that were assisting my brothers in their hostile takeover of Cooper Companies in 1988. Stroock also filed 13D SEC reports for my brothers stating there was no litigation pending against my brothers in 1989.

Cases were assigned to Southern District of New York Judge Prudence Abrams, now know as Judge Prudence Carter Beatty. Judge Beatty was formerly a partner at Stroock, Stroock & Lavan.

Orders for relief were not entered until April 1991 , giving my brothers almost two years to work out settlement and hide assets.

Judge Beatty appointed Marc Stuart Goldberg as my brothers trustee. Marc Goldberg used Manufacturers Hanover Trust company as his reference in 1989 Martindale Hubbell attorney listings. In April 1991 she also allowed my brothers trustee to takeover all non-bankrupt corporate and partnership properties and proceeds.

The order on the docket states "unsigned order regarding ownership/partnership issues." Milbank partner Steven Blauner never objected, even though I repeatedly asked how a trustee for my brothers could takeover non-bankrupt properties. In 1991 I had a tax lien levied against me for 'phantom' income.

In November, two days before the trustee and accountants were to review books and records, the office that was the headquarters for all the Sturman enterprises, was destroyed by arson. The trustee did not maintain insurance on the property and all records were destroyed.

The law firm of Pollack & Greene agreed to take my cases on contingency in July 1993. Pollack & Greene never put in filed any objections on my behalf against trustee. Facing a third eviction Pollack & Greene arranged for me to enter into an agreement with two real estate developers for a $30,000 loan and all my interest in the properties attached to my proof of claim. Pollack & Greene appointed themselves as counsel to this new partnership. Pollack & Greene filed malpractice claim on my behalf in April 1994.

During discovery, I saw internal documents from Milbank that confirmed to me the fact that my brothers' trustee had no right to takeover the properties. Trustee and his law firms have received fees totaling over $5 million and are claiming they are owed approximately $2 million more.

I also found out that Pollack & Greene had been getting paid by these developers behind my back. I informed Pollack & Greene that they should rescind the agreement in June of 1995. They refused and told bankruptcy court that they had a conflict and could no longer represent me. I was forced to appear pro se until 1997.

Pollack & Greene sued me for fees and took me to arbitration at the same time I was appearing in bankruptcy court per se. Without me being present at some hearings or putting in evidence, the arbitrator decided for Pollack & Greene and they got a judgment against me in 1998.

Pollack & Greene filed an Involuntary bankruptcy proceeding against me On April 14, 2002. Judge Beatty entered orders for relief in my Involuntary Bankruptcy she attached it to my brother Wayne's' case so it would not be heard by another Judge.

Milbank filed on my behalf the following complaints starting in 1987 and the following removed by Milbank to Southern District New York Bankruptcy Court Judge Prudence Beatty (formerly Abrams) these cases have never been decided and are attached as exhibits A- N to my Proof of claim $20 million in each brothers cases.

Exhibit A -- list of 28 Properties

Exhibit B

Exhibit C June 26, 1987 Donna Sturman Butler v. Howard Sturman, Bruce Sturman and Wayne Sturman (Supreme Court, New York County, Index No. 15379/87) IAS Part 3 (Davis, J.)

July 9, 10, 1987 Amended Complaint Donna Sturman Butler v. Howard Sturman, individually and as Executor of the Estate of Muriel Sturman, et al. Bruce Sturman,Wayne Sturman, Joseph Warren, as Executor of the Estate of Muriel Sturman, 6-8 Pelham Parkway Corp., Anthony J. Griffen Corp., HP Howard & Co., H Development Co., Wayne Adam Corp., and Cornwall Estates Inc. (Supreme Court State of New York, County of New York Index No. 15379/87) with attached Notice of Removal to S.D.N.Y.B.C. dated June 28, 1991 and Verified Application for Removal dated June 28, 1991

Exhibit D petition for a compulsory account dated January 6, 1988, with attached exhibits, in Proceeding for Compulsory Account in the Estate of Muriel Sturman, Deceased, State of New York, County Of New York, Surrogates Court, File No. 2400/80

Exhibit E Order to Show cause dated July 27, 1990, with attached proposed order and affidavit in support of Respondent Donna Sturman Butler's Motion to Enjoin Distributions without Court order dated July 27, 1990 (with attached exhibits thereto), in The Matter of the Judicial Settlement of the account of Howard Sturman, Executor of the Estate of Muriel Sturman, Deceased, State of New York, County of New York, Surrogate's Court, File No. 2400/80

Exhibit F Amended Third-party complaint by Donna Sturman Butler dated June 29, 1990, in Cornerstone Leisure Industries, Inc. and Cornerstone Metrofit Corporation v. Howard P. Sturman et al., United States District Court for the District of Utah, Northern Division, Civil No. 89-NC 0077J (Jenkins, J.)

Exhibit G Amended Answer, Counterclaim and Cross-Claim by Donna Sturman Butler dated June 28, 1990 in Cornerstone Leisure Industries, Inc. and cornerstone Metrofit Corporation v. Howard P. Sturman et al., United States District Court for the District Of Utah, Northern Division, Civil No. 89-NC 0077J (Jenkins,J.)

Exhibit H Verified complaint dated June 12, 1991, with attached Exhibits, in Donna Sturman Butler, individually and derivatively on Behalf of Wayne-Adam Corp., v. Svirsky et al., Supreme Court of the State of New York, County of New York, Index No., 3076/91

Exhibit I Complaint dated July 16, 1990, with attached exhibits, in Donna Sturman Butler v. Cowan,Liebowitz & Latman, P.C., Supreme Court of the State of New York, County of New York, Index No. 9560/90

Exhibit J Complaint dated September 10, 1990, with attached exhibits, in Donna Sturman Butler v. Overseas Funding Corporation et al., Supreme Court of the state of New York, County of Westchester, Index No. 91-15613

Exhibit K Complaint dated July 16, 1990, with attached exhibits, in Donna Sturman Butler v. Cowan and Whitney, Supreme Court State of New York, County of Westchester, Index No. 91-15611

Exhibit L Complaint dated July 16, 1990, with attached exhibits, in Yorkville Associates v. Overseas Funding Corporation et al., Supreme Court of the State of New York, County of Westchester, Index No. 91-15614

Exhibit M Complaint dated September 10, 1990, with attached exhibits, in Pelham Associates v. Overseas Funding Corporation and M and H Construction Corp., Supreme Court of the State of New York, County of Westchester, Index No. 91-15612

Exhibit N Complaint dated July 16, 1990 , with attached exhibits, in Pelham Racquetball and Health Club d/b/a Metrofit Athletic Club of Pelham v. Cowan et al., Supreme Court State of New York, County of New York, Index No. 12918/90

Damages were to be determined after discovery and trial. Constructive trusts were to be imposed to me upon

The court was also to grant such other and further relief as this court may deem just and proper, together with interest and costs and disbursements of this action, including reasonable attorneys' fees. The trustee has sold or abandoned all properties without investigating my interests in those properties or monies owed to me. He also sold large amounts of Cooper Companies stock.

In 1994 Chemical bank, successor to Manufacturers filed Adversary against the Trustee , Marc Goldberg for unjust enrichment of $18 million dollars from the sale of the stock. They settled and the terms of the settlement not in court records. When I questioned why I was not noticed about the sale of the stock the Judge told me to be quiet.

When I tried to remind her that I was to be noticed on all matters, she had me removed in handcuffs by marshals. I was held in handcuffs for several hours until a friend of mine called attorney Ronald Kuby. When he called the judge she left the bench during the hearing to tell marshals to let me go.

I was later informed by her law clerk that she was afraid that Ron Kuby would show up to court with reporters.

Helen and Charles filed adversaries on my behalf in 1998 against Chase Manhattan Bank and the trustee Marc Goldberg. Judge Beatty has not made any decisions or allowed discovery since 1998.

In April 2001, I agreed to a settlement with the trustee to settle for $3.8 million. Hearings were held in June/July 2001 with the trustee testifying to how I was entitled to constructive trust interest to all the proceeds. He further stated that he believed settlement would benefit other creditors as he believed I could prove I was the only bona fide creditor.

Judge Beatty denied the settlement at a hearing held on December 7, 2001, stating "I had already received too much."

The transcript from this hearing also contains numerous biased remarks against me. My counsel requested that a distribution be made to me. He informed her that I was once again facing homelessness.

She told him that "could not make a distribution to me because of the Pollack & Greene judgment and that it was Christmas time maybe he should parade me and my three children and play the violin, and ask them to allow me to have some money."

We have been homeless since January 2002 living with friends and now in a hotel for the homeless.

Since 1991 , my children and I have been evicted from six apartments, I have no credit and have been labeled as litigious.

I had no experience with litigation prior to the hiring of Milbank in 1986 and initially was told by them they could reach a settlement with my brothers and there would be no need for litigation. I also have had three children since then and having been raising them alone since April 1993.