Judge to Determine Whether to Name Receiver for TMI
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NEWPORT BEACH — Orange County Superior Court Judge Floyd H. Schenk is to decide today whether a receiver should be appointed to take over troubled Teachers Management & Investment Corp., the Newport Beach firm that raised about $1 billion from 60,000 California educators.
Four teachers sued TMI on Aug. 23, alleging that the 26-year-old company, which offered investments in real estate partnerships, lost $100 million of clients’ money through fraud and racketeering. The suit alleges that the company is insolvent and seeks appointment of a receiver to manage any remaining assets.
TMI’s owners, Maurice Shuman and John Martin, deny any wrongdoing and say the company lost money because of California’s real estate downturn.
The receivership hearing will be at 1:30 p.m. in Orange County Superior Court.
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