Trustee Targets Smith Gambrell in Hedge Fund’s Downfall

A bankruptcy trustee contends that the Atlanta law firm of Smith, Gambrell & Russell failed to prevent the founder of a now-defunct Atlanta investment firm from embezzling from his clients. Trustee William Perkins is seeking $80 million from the firm and its former counsel, C. Gladwyn Goins. Perkins contends Smith Gambrell and its lawyer, Goins, breached their fiduciary duty to their client, International Management Associates, "by placing their own interest in securing fees and expectation of future profits” from the firm above their own professional judgment and duties. Perkins also claims the law firm was negligent in its dealings with the Securities and Exchange Commission on behalf of IMA.

Trustee Targets Smith Gambrell in Hedge Fund’s Downfall abajournal.com Thu, Aug 7, 2008