Several lawsuits were filed late Wednesday in U.S. Bankruptcy Court against individuals who apparently profited from the fruits of alleged local securities scammer Luis Rivas, accused by the federal government of stealing more than $30 million from about 500 investors across the country.

The lawsuits, filed on behalf of the bankruptcy trustee, represent ongoing litigation in Mr. Rivas’ bankruptcy proceeding. A federal bankruptcy judge in Chattanooga forced Mr. Rivas into involuntary bankruptcy in May amid concerns he was in the process of liquidating his assets and trying to leave the country.

Once Mr. Rivas was in bankruptcy, a trustee set about trying to recover his assets to return money to his victims, but some people who profited from Mr. Rivas’ wealth are refusing to hand over those assets, according to court documents.

Among them is a woman named Pamela Green, who received a check from Mr. Rivas in the amount of $225,000 on May 18, 2008, court records show, just days after a federal judge had declared him bankrupt.

Other defendants include people who received payouts on their investments with Mr. Rivas within 90 of the bankruptcy proceeding. Because of the bankruptcy proceeding, however, those payments are considered “preferential” according to U.S. bankruptcy law, and therefore must be forfeited.

Mr. Rivas is currently in jail in Anderson, S.C., and is criminally charged with several mail, wire and securities fraud crimes.

See tomorrow’s Times Free Press for complete details.

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