GTG Successful in Obtaining $77,000,000 Non-Discharge Judgment

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In the Chapter 7 bankruptcy case of Paul Anthony Morabito pending before the United States Bankruptcy Court for the District of Nevada, Gerald Gordon and Mark Weisenmiller were successful in obtaining a judgment determining that a pre-petition claim for $77,000,000 held clients, Jerry Herbst, JH Inc, and Berry Hinkley Industries, is not dischargable as provided for in Section 523 of the Bankruptcy Code.

The claim arose from a state court judgment entered in favor of the clients in 2010. Subsequently, a settlement was reached between Mr. Morabito and the clients which Mr. Morabito breached, resulting in the initiation of involuntary bankruptcy proceedings by the clients against Mr. Morabito. Mr. Gordon, Mr. Weisenmiller and Ms. Gabrielle Hamm were successful in obtaining an order for relief during the involuntary proceedings.