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ATTORNEYS FIGHTING OVER GENOCIDE FUND GET EXTENSION
By Mark Kellam
Glendale News Press
http://www.glendalenewspress.com/news/tn-gnp-1122-armenian-genocide-funds,0,6542444.story
Nov 22 2011
CA
They are expected to negotiate an agreement that deals with accounting
discrepancies by Dec. 5.
A federal judge on Monday gave attorneys fighting over accounting
discrepancies at a multimillion-dollar compensation fund for the
descendants of Armenian Genocide victims two weeks to hash out an
agreement or face an extensive court-ordered audit.
U.S. District Court Judge Christina Snyder ordered attorneys Mark
Geragos and Roman Silberfeld to come back on Dec. 5 with an update on
how they want to address accounting discrepancies in a compensation
fund set up several years ago by insurance company Axa S.A. to pay
descendents of Armenian Genocide victims.
Geragos requested that he and Silberfeld, who is representing
Glendale-based attorney Vartkes Yeghiayan, be "locked in a room"
because he believes they can reach an agreement.
Attorneys on both sides and their staffs have been examining 94 claims
that initially appeared to have problems out of about 1,000 claims
filed with the fund's administrators.
In a motion filed with the court on Friday, Silberfeld said every
claim was underpaid because the multiplier used to determine payment
amounts was off by 0.1%.
In some instances, separate but identical claims filed by siblings
were denied, others were approved, according to Silberfeld's motion.
Also, some claimants who received multiple checks only cashed those
for smaller amounts, even though checks for larger amounts were
supposedly issued at the same time.
Silberfeld argued that if there were discrepancies with some of the
94 claims studied, it's reasonable to believe there are problems with
the remaining 900 claims.
Silberfeld said that while some of the accounting issues brought
up in his motion could be addressed in a private meeting, he didn't
think he could let the remaining 900 claims go unchecked.
"At least get some start on this," Snyder said, adding that the
massive amount of accounting work involved with an audit would
seriously deplete the remaining $2.5 million in the fund.
She also brought up the option that the people who were in charge of
administering the fund could be forced to help cover the costs.
Earlier this year, Geragos and attorney Brian Kabateck sued Yeghiayan,
charging that he and his wife, attorney Rita Mahdessian, set up bogus
charities and misused nearly $1 million during the last six years.
Kabateck told Synder on Monday that the motions regarding the Axa
fund are Yeghiayan's attempt to sideline that lawsuit.
Geragos, Kabateck and Yeghiayan were on the same legal team that
in 2005 brought a lawsuit that resulted in Axa's $17.5-million
compensation fund, which was set up to pay claims that it failed
to compensate descendants of Armenian Genocide victims who bought
policies between 1875 and 1923.
By Mark Kellam
Glendale News Press
http://www.glendalenewspress.com/news/tn-gnp-1122-armenian-genocide-funds,0,6542444.story
Nov 22 2011
CA
They are expected to negotiate an agreement that deals with accounting
discrepancies by Dec. 5.
A federal judge on Monday gave attorneys fighting over accounting
discrepancies at a multimillion-dollar compensation fund for the
descendants of Armenian Genocide victims two weeks to hash out an
agreement or face an extensive court-ordered audit.
U.S. District Court Judge Christina Snyder ordered attorneys Mark
Geragos and Roman Silberfeld to come back on Dec. 5 with an update on
how they want to address accounting discrepancies in a compensation
fund set up several years ago by insurance company Axa S.A. to pay
descendents of Armenian Genocide victims.
Geragos requested that he and Silberfeld, who is representing
Glendale-based attorney Vartkes Yeghiayan, be "locked in a room"
because he believes they can reach an agreement.
Attorneys on both sides and their staffs have been examining 94 claims
that initially appeared to have problems out of about 1,000 claims
filed with the fund's administrators.
In a motion filed with the court on Friday, Silberfeld said every
claim was underpaid because the multiplier used to determine payment
amounts was off by 0.1%.
In some instances, separate but identical claims filed by siblings
were denied, others were approved, according to Silberfeld's motion.
Also, some claimants who received multiple checks only cashed those
for smaller amounts, even though checks for larger amounts were
supposedly issued at the same time.
Silberfeld argued that if there were discrepancies with some of the
94 claims studied, it's reasonable to believe there are problems with
the remaining 900 claims.
Silberfeld said that while some of the accounting issues brought
up in his motion could be addressed in a private meeting, he didn't
think he could let the remaining 900 claims go unchecked.
"At least get some start on this," Snyder said, adding that the
massive amount of accounting work involved with an audit would
seriously deplete the remaining $2.5 million in the fund.
She also brought up the option that the people who were in charge of
administering the fund could be forced to help cover the costs.
Earlier this year, Geragos and attorney Brian Kabateck sued Yeghiayan,
charging that he and his wife, attorney Rita Mahdessian, set up bogus
charities and misused nearly $1 million during the last six years.
Kabateck told Synder on Monday that the motions regarding the Axa
fund are Yeghiayan's attempt to sideline that lawsuit.
Geragos, Kabateck and Yeghiayan were on the same legal team that
in 2005 brought a lawsuit that resulted in Axa's $17.5-million
compensation fund, which was set up to pay claims that it failed
to compensate descendants of Armenian Genocide victims who bought
policies between 1875 and 1923.