BEND, Ore. (AP) — Umpqua Bank has settled a $30 million lawsuit with the trustee and creditors of Bend-based Summit 1031 Exchange, which had accused Umpqua of aiding and abetting Summit in an alleged Ponzi scheme.
The Bulletin reported the parties involved would say only that a settlement was reached, adding that a final document had not been signed. Terms were not available.
Both Kevin Padrick, the court-appointed trustee for Summit’s 2008 U.S. Bankruptcy Court filing, and Michael Simon, the attorney for some of Summit’s creditors, said they were barred from discussing the settlement. Umpqua Bank’s general counsel, Steve Philpott, also declined comment.
The 16-month-old lawsuit was initially filed by Padrick, who is in charge of liquidating Summit’s assets, such as real estate, in the bankruptcy proceedings for the creditors.
