A Wisconsin state court Tuesday named Milwaukee bankruptcy attorney Michael Polsky, as receiver for Central States Mortgage Co., the troubled credit union-owned CUSO which on its own dropped its long-standing racketeering lawsuit against former CEO and founder Richard Jungen.
The latest court actions are expected to speed liquidation of the Wauwatosa, Wis. CUSO which previously handled mortgage servicing for 250 Midwest CUs until forced to close its doors March 9 and placed into a bankruptcy proceeding before Milwaukee Court Circuit Court Judge John DiMotto.
In the receiver hearing, the Milwaukee court, according to press reports, gave Polsky, a partner in Beck, Chaet, Bamberger & Polsky, the right to refile the CSMC lawsuit, which alleges Jungen and others tried to defraud CSMC of $15 million through a funding scheme.
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