Timothy Scrantom was once considered a pioneer in the litigation funding community. These days, the chatter is less flattering. Scrantom, as well as Kenneth Elder and others, are ensconced in a legal battle to prevent them from seizing control of Total Asset Recovery Service.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Timothy Scrantom was once considered a pioneer in the litigation funding community. These days, the chatter is less flattering. Scrantom, as well as Kenneth Elder and others, are ensconced in a legal battle to prevent them from seizing control of Total Asset Recovery Service.
Legal Newsline reports that Ferraro Law Firm believes Scrantom and Elder are in league with Huddleston Capital VIII, a firm that recently pursued action to gain control over the existing TARS cases. The case itself suggests that life insurance companies failed to hand over unclaimed policies to the state—as dictated by abandoned property laws.
What followed was a convoluted series of events involving failed qui tam litigation led by Elder and litigated by Ferraro Law, and the formation of TARS in 2009 for the purpose of pursuing escheat and insurance litigation. TARS ultimately hired Scrantom as a consultant at the behest of Elder, but not before relationships soured between both men and Ferraro Law.
Now, Ferraro Law suspects that Elder and Scrantom are in league with Huddleston Capital—and states as much in their lawsuit. Though these are mere allegations at this point, Huddleston reps have sent default notices and collection letters to TARS.
Elder and Scrantom have thus far not responded to the lawsuit. And it remains unclear what evidence Ferraro has at its disposal, though given the complex nature of events, this case is likely to drag on for some time.
