By: Mike Stetzer
February 14, 2011
The former CEO of a financial services firm that shut down after investigations by regulators recently filed for Chapter 7 bankruptcy, listing mostly business-related liabilities.
Jeffrey A. Martinovich, the former CEO of MICG Investment Management LLC, claims he has assets of between $1 million and $10 million, and liabilities of up to $50 million, according to the Daily Press. He claims to have between 100 and 199 creditors.
The filing also lists 140 agencies, organizations, businesses and people that are to be notified of his bankruptcy filing. Among them are creditors to whom the notice is sent to make them aware that they are now blocked from taking collection action against Martinovich.
Prior to the filing, Martinovich faced three lawsuits and an arbitration case in which he was named as a defendant, according to the news source. Two of the suits have been filed by investors, and each seeks more than $1 million in damages against Martinovich. The third suit demands repayment of a $165,000 loan, and the arbitration case alleges that Martinovich and several associates sold a $50,000 MICG bond to a non-accredited investor. These suits have been temporarily halted due to the automatic stay put in place by his bankruptcy filing . This protection automatically takes effect when a consumer files for bankruptcy, and blocks any collection action against the filer during the bankruptcy process.