"For a successful recovery, the objective is to discover, freeze and seize assets. The best way to achieve this is by reversing the litigation paradigm and focusing on recovering first, not last."
Rick is a partner at HMB and a member of the firm’s Litigation Group. He concentrates his practice on secured creditors’ rights, bankruptcy representation, loan enforcement and international litigation to recover claims and assets.
Rick regularly advises financial institutions, hedge funds, privately-held companies, bankruptcy trustees, receivers, non-bank lenders and high-net-worth individuals on a broad range of workout, restructuring and transactional matters. He helps secured creditors recover pledged collateral through Uniform Commercial Code sales and commercial mortgage foreclosures, as well as prosecute claims based on fraud, non-performing loans and intercreditor disputes. Additionally, he defends creditors against third-party claims when asserted.
Highly-regarded for his knowledge of international legal systems, Rick frequently serves as special counsel to corporations, individuals and their advisors as they navigate complex international banking and fraud matters. His pioneering status as the first U.S. Attorney to employ the Mutual Legal Assistance Treaty in Uruguay, obtain Norwich Pharmacal relief in Vancouver, British Columbia and enforce consent directives in bankruptcy court in the state of Washington make him a sought-after media expert on international asset recovery.
Doing What’s Best for Your Business
Clients rely on Rick’s unique and expansive knowledge of international law and his business first approach to litigation. Rick focuses on what’s best for your business and what you’re trying to accomplish through litigation. Sometimes it’s best to settle, sometimes it’s best to go to trial. As an accomplished trial attorney, Rick is practical and aggressive.
- Represented U.S. financial institution in enforcement of loan agreement and $2 million promissory note against an international container shipping company located in Bermuda. Sued on the note in Bermuda, pursued post judgment collection there, as well as in Delaware, where discovery was conducted in aid of foreign judgment, and Hong Kong, where assets were identified against which to satisfy judgment. Jurisdictions involved: Bermuda, Delaware, Hong Kong
- Represented U.S. financial institution in recovery of $1 million that was fraudulently transferred to Uruguay. Funds represented account receivable collections that were collateral security for a line of credit. Utilized Mutual Legal Assistance Treaty to repatriate transferred funds to Registry of District Court. In order to access those funds that were exempt from seizure, appointed a receiver, had receiver enter plea agreement in criminal proceeding, and had restitution ordered. One hundred percent of the funds fraudulently transferred held by Registry of District Court were paid to the victim as restitution. Jurisdictions involved: Illinois and Uruguay
- Represented U.S. financial institution in recovery of less than $1 million paid to a forged payee, where funds were transferred to a bank in Lebanon. Determined that recovery in Lebanon was unlikely, but successfully recovered money from parties located in the United States. Jurisdictions involved: New York and Lebanon
- Represented U.S. financial institution in collection of $2 million loan from Mexican guarantors, who also had pledged stock in Mexican floral companies. Unable to complete recovery because bank records, which were needed to trace transfer of assets, were destroyed by Hurricane Katrina. Jurisdictions involved: Illinois, Mexico, Texas
- Represented U.S. financial institution in recovery of $1 million paid on illegally scanned check where funds were transferred to the Bahamas. Through issuance of Mareva injunction, 100 percent of funds were repatriated to client. Jurisdictions involved: Bahamas, Illinois
- Represented U.S. financial institution in recovery of forged check against Panamanian company. After determining that the fraudsters had no identifiable assets, the client decided not to pursue the recovery. Jurisdictions involved: Illinois, Panama
- Represented U.S. hedge fund defrauded in $23 MM of equipment finance transactions involving fictitious call centers. Jurisdictions involved: India, United Kingdom, Singapore, New Jersey, New York
- Represented British Virgin Islands hedge fund in enforcement of $21 million judgment against an individual defendant who, with the assistance of his legal counsel, had fraudulently transferred assets to family members and their family-run companies. Actions brought in four states and Letters Rogatory enforced in Cook Islands. Judgment was settled for a significant amount. Jurisdictions involved: Cook Islands, Florida, Pennsylvania, New York, Washington, D.C.
- Represented group of high net worth individuals and related corporations in recovery of $12 million loss, including approximately $4 million in cash, through preemptive discovery and issuance of Mareva injunctions. Identified several co-conspirators involved in the fraud and millions of dollars in concealed assets. Jurisdictions involved: Barbados, Canada, Cayman Islands, Florida, Israel, New York, Switzerland
- Represented six European and African-based individuals defrauded by extensive “pump and dump” securities fraud. Fraudsters bought and sold stocks among themselves to inflate stock value and create a false market. They then sold millions of dollars worth of stock to hundreds of investors in the US., Europe and Africa. Successfully identified assets, but client declined to pursue recovery. Jurisdictions involved: Belgium, California, Canada, Philippines, Thailand
U.S. Bankruptcy Trustees
- Represented a U.S. bankruptcy trustee for a cruise line business in prosecution and collection of multi-million dollar fraudulent transfers. Filed preference actions against foreign defendants located in eleven European jurisdictions. Reached settlement with defendants who had assets and dismissed defendants who did not have assets. Jurisdictions involved: Belgium, Denmark, France, Greece, Italy, Netherlands, Norway, Spain, Tahiti, Turkey, United Kingdom
- Represented a U.S. bankruptcy trustee in the single largest individual bankruptcy in the state of Washington to recover assets when the debtor fled the country and stole, concealed and dissipated estate assets. Jurisdictions involved; France, Switzerland, Isle of Man, Belize, Canada, Washington
- Represented FDIC as receiver for failed bank where contested release of borrower from note obligation and enforcing loan against both borrower, a neurosurgery center, and guarantor, the neurosurgeon. District court ruled release without consideration and after judgment and subsequent bankruptcies, collected the full balance owed on the $2MM loan
- Represented FDIC as receiver for failed bank as secured creditor in bankruptcy of borrower, a real estate developer and hard money lender, indebted to the failed bank for over $20MM, who failed to disclose all of his assets and refused to comply with his duties as a debtor in bankruptcy such that he had to be incarcerated. Have recovered from bankruptcy estate over $5MM from sales of undisclosed assets on secured properties
- Represented secured equipment lessor who fully recovered judgment of $4.9MM on guarantee by manager of limited liability company that operated a medical center which filed bankruptcy and had leased medical equipment. Defeat argument on summary judgment that stipulated loss value damages provision was a penalty under Illinois law
- Represented secured equipment lessor in bankruptcy of one of the largest printing companies to have one of the $3MM equipment leases assumed with change in end of lease terms and to sell equipment securing second equipment lease
- Represented secured creditor who appealed from decision the bankruptcy court denying its motion to modify automatic stay. The District Court held that trustee’s order abandoning collateral was not a “termination of insolvency proceedings” within meaning of Illinois statute providing that perfected security interest existing at time insolvency proceedings are commenced remains perfect until 60 days after termination of proceedings, and thus, secured creditor’s interest remained perfected despite expiration of five-year period during insolvency proceedings, and creditor’s rights in collateral would take precedence over buyer not in ordinary course of business
- Represented bank who defended against party which was listed as a payee on checks who brought action against bank alleging conversion after bank paid out on the checks without obtaining the payee’s endorsement. District Court entered summary judgment in favor of the payee, and bank appealed. The 7th Circuit Court of Appeals held that: (1) under Illinois law, bank could raise defense of unjust enrichment, and (2) material issues of fact precluded granting summary judgment in favor of the payee
- Represented bank who defended action by Judgment creditor who brought action against lender to recover assets of debtor. District Court granted judgment creditor’s motion for summary judgment, and lender appealed. The 7th Court of Appeals reversed grant of summary judgment and held that: (1) future advances of the lender were protected for 45 days following attachment of the lien, and (2) “nonadvances” made by the lender to protect and preserve the collateral had priority over judgment creditor’s lien
- Represented construction loan mortgagee who brought foreclosure action. Land contract purchaser counterclaimed for specific performance of the land contract. The Circuit Court granted summary judgment to mortgagee as to priority of mortgagee’s lien, entered judgment of foreclosure and sale, and confirmed the sale and distribution. Purchaser appealed. The Illinois Appellate Court held that: (1) construction mortgage was subrogated to earlier-recorded mortgage, under equitable doctrine of conventional subrogation; (2) land purchase contract between land trust beneficiary and purchaser did not create a vendee’s lien under doctrine of equitable conversion; and (3) purchaser was not entitled to specific performance
- Represented bank who brought action against borrowers for fraudulent transfers of properties out of land trusts, Circuit Court entered judgment in favor of bank, and borrowers appealed. The Illinois Appellate Court held that: (1) bank had valid security interest in land trust; (2) borrowers’ transfer of property out of land trust was fraudulent conveyance; and (3) bank was not estopped from seeking relief for fraudulent conveyance although bank, as land trustee, executed trustee’s deed in connection with conveyance
- University of Miami, J.D.
- Washington University, B.A.
- Western District of Michigan
- Eastern District of Michigan
- U.S. Court of Appeals, 1st Circuit
- U.S. Court of Appeals, 4th Circuit
- U.S. Court of Appeals, 7th Circuit
- Best Lawyers in America, 2022-2024
- Asset Recovery Lawyer of the Year, 2014
- American Bar Association, Commercial & Business Litigation Committee, International Litigation Subcommittee, Co-Chair
- American Bankruptcy Institute, Commercial Fraud Committee, Co-Chair
- Chicago Bar Association
- International Bar Association
- Jewish Community Center of Chicago, Honorary Director
- National Association of Bankruptcy Trustees
- National Association of Federal Equity Receivers
- Aaron Hammer and Rick Rein Present "Bankruptcy in Crypto" for the LFAMarch 13, 2023
On March 8, 2023, Aaron L. Hammer and Rick S. Rein joined the Law Firm Alliance for their Bankruptcy Community Meeting.
- Upcoming Webinar: Rick S. Rein Presents, “International/Cross-Border Disputes & Litigation – Judgement Enforcement & Venue Considerations,” with ABI – 1/25/23January 11, 2023
On January 25th, Rick Rein will join an esteemed panel of cross-border and international litigation professionals for a webinar hosted by ABI. They will share their experiences and insights on how to best approach cross-border disputes involving collection issues and venue considerations.
- HMB at the 2023 Midmarket Deal Makers Symposium – 1/10 – 1/13January 9, 2023
HMB Legal Counsel is excited to sponsor and present at the 2023 Midmarket Deal Makers Symposium in Miami, FL. This exclusive event seeks to facilitate authentic connections and relationships amongst leading dealmakers from a variety of industries.
- Q&A Webinar: Cross-Border Asset Recovery with Rick S. Rein – 5/3/22March 31, 2022
Join HMB's Rick Rein for a 45-minute Q&A session that gives attendees the opportunity to ask our international asset recovery expert specific questions.
- Rick S. Rein Presents a Webinar with Strafford- "Enforcing U.S. Judgments Outside the U.S" - 9/2/20July 9, 2020
9/2/20 1:00PM-2:30PM ET Join Rick, with a panel of experts, for this CLE webinar that will discuss how to locate and seize offshore assets with which to satisfy a US obligation or judgment. The panel will also address tools to prevent the removal of assets to other countries. The panelists will address issues such as: What countries are the hardest…
- Cryptocurrency, Your Chapter 11 Table Is ReadyDecember 19, 2022
In this article, Aaron L. Hammer, Rick S. Rein, Dan Wen and Claudia Suszczynska provide an overview of the decline in the cryptocurrency industry in 2022, otherwise known as a “crypto winter,” and the potential impacts of a surge in Chapter 11 bankruptcy filings by players in the space.
- Rick S. Rein Published in ABA - "How to Counter Fraud Through the use of Equity Receiverships"October 12, 2022
In this article, Rick S. Rein discusses how an equity receivership can be an effective tool to address financial fraud related to a business's mismanagement or improper use of assets.
- Rick S. Rein Published in FRAUD MagazineMay 4, 2022
Bankruptcy fraud, which lessened during the pandemic, could increase this year according to HMB’s Rick S. Rein and Brad Sargent, Founder of The Sargent Consulting Group, LLC. In an article published by the Association of Certified Fraud Examiners (ACFE) FRAUD magazine, Rick and Brad provide an overview of bankruptcy fraud and constructive fraud.
- Corporate Bankruptcies in 2021 and BeyondApril 12, 2021
CHAPTER 11 FILINGS IN 2020 AND BEYOND Unless your January 2020 payroll included Nostradamus, the forthcoming global pandemic and resulting mass quarantines were largely unforeseeable. Last year’s unpredictability did, however, lead to the rather predictable material increase in Chapter 11 bankruptcy filings. Epiq Companies recently reported to the American Bankruptcy Institute that commercial Chapter 11 filings increased 29% in 2020.…
- Rick S. Rein Published in "Cross-Border Strategy to Recover on Claims Against Foreign Parties and Assets" by the American Bar AssociationNovember 3, 2020
Read the full article by ABA here. Pursuing legal relief against foreign parties and assets is a complex task that requires a well-developed plan to achieve a cross-border recovery. Globalization has created new challenges for parties threatened by, or involved in, cross-border disputes. Internet communication has made electronic transactions seamless and easy to operate anywhere in the world. Tax havens…
- Triumph in the U.S. Bankruptcy Court District of NevadaJanuary 19, 2024
Congrats Rick S. Rein and Nathan E. Delman on securing a nondischargeability ruling in a Chapter 7 case on a $10 million claim after a two day trial in the U.S. Bankruptcy Court for the District of Nevada. The claim involved a loan that was obtained under false pretenses, resulting in a non-dischargeable debt in favor of the client.
- HMB Attorneys Recognized by Best Lawyers® in America 2024August 17, 2023
HMB is proud to have 16 attorneys recognized by Best Lawyers in the 2024 editions of The Best Lawyers in America® and the Best Lawyers: Ones to Watch® in America. Congratulations to our attorneys!
- HMB Attorneys Recognized by 2023 Best Lawyers in AmericaAugust 18, 2022
HMB is proud of the attorneys that have been recognized by Best Lawyers in America and Best Lawyers: Ones to Watch in America.
- Jeffrey A. Hechtman, Richard M. Horwood, Rick S. Rein and Jeffrey A. Zaluda Named to Best Lawyers in America 2022 ListAugust 19, 2021
Jeffrey A. Hechtman, Richard M. Horwood, Rick S. Rein and Jeffrey A. Zaluda were named to Best Lawyers in America 2022 and Alicia A. Handy was named to the Best Lawyers 2022 Ones to Watch List.
- Client Success: Lindenmeyr Munroe Obtains $1M Judgment Plus 5% Prejudgment Interest Per AnnumJuly 14, 2021
HMB assisted its client, Central National Gottesman, Inc. d/b/a Lindenmeyr Munroe ("LM") in obtaining a judgment against J.S. Paluch, Inc. in the amount of $1,013,476.19 plus 5% prejudgment interest per annum. HMB initiated litigation on behalf of Lindenmenyr Munroe in late 2019 seeking judgment in its favor for unpaid invoices and breach of a promissory note. The complaint alleged two…
- Insolvency As An Asset Recovery Tool in SwitzerlandSeptember 15, 2023
The concerns about finding and recovering assets in Switzerland are legion. There is a strict blocking statute and bank secrecy, but all is not lost. In the context of insolvency proceedings, Swiss criminal proceedings offer an effective tool to enable disclosure of banking information and the freezing of assets. The blocking statute provides that any person who carries out activities…
- Service of Pleadings in the Electronic AgeMarch 28, 2023
Recent court proceedings demonstrate the extent courts may go to authorize alternative means of service. When service methods by process server or mail, whether certified or express, are unsuccessful, you should consider the other alternative means courts have allowed. In In re Three Arrows Cap., Ltd., No. 22-10920 (MG), 2022 WL 17985969 (Bankr. S.D.N.Y. Dec. 29, 2022), after an insolvency proceeding…
- Subsequent Transferee Liability in Cryptocurrency BankruptciesJanuary 5, 2023
In the new year, cryptocurrency bankruptcies will be breaking new ground over the ability to recover customer deposits. An understanding of the ruling in the Bernie Madoff SIPC liquidation could provide guidance for such recoveries. Bankruptcy Code sections 548 (a) and 550 (a) give chapter 11 debtors, appointed trustees and post-confirmation liquidating trustees the power to sue and recover money…
- The UCC's Proposed Article 12: Controllable Electronic RecordsOctober 11, 2022
Written by: Rick S. Rein with contributions made by Ben Dockery. “The 2022 Amendments to the Uniform Commercial Code (UCC) update and modernize the UCC to address emerging technologies. A new UCC Article 12 on Controllable Electronic Records governs transactions involving new types of digital assets (such as virtual currencies and nonfungible tokens), and corresponding changes to UCC Article 9…
- Why Offshore Trusts in Nevis Are Used For Asset ProtectionJuly 28, 2022
Trusts are popular for various reasons to hold assets, and the Nevis International Exempt Trust is indicative of the reason for such popularity as an asset protection device. A settlor looks for a safe and stable jurisdiction to hold assets and to be able to access and control such wealth. Nevis provides such security. As important, settlors consider protection from…