X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PORTLAND-Two former senior executives of Wilshire Financial Services Group won a round in court Friday when Multnomah County Circuit judge pro tem Jeff Kilmer threw out an improper distribution of funds charge. It wasn’t because Andrew Wiederhorn and Larry Mendelsohn did not divert some $6.8 million in unauthorized advances and bonuses to themselves in 1998. Kilmer ruled that Wilshire Financial forfeited the right to litigate the matter when its executives signed waivers releasing the two from liability when the company emerged from bankruptcy on June 10, 1999.

The charge was actually a counterclaim to a $20-million wrongful termination and defamation suit brought by Wiederhorn, the trial for which is scheduled to begin Oct. 2. Wilshire has not yet decided whether to appeal the counterclaim ruling.

Wilshire Financial fell into bankruptcy in March of 1999, and after debt restructuring, two of the company’s major creditors gained control of the board. Founder and CEO Widerhorn and his senior executive Mendelsohn were fired in August of that year but retain control of the publicly traded Wilshire Real Estate Investment Trust.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.