Opinion ID: 195734
Heading Depth: 4
Heading Rank: 2

Heading: Some showing of harm

Text: 46 The record supports the district court's conclusion that the F.D.I.C. would be harmed if no trustee were appointed--specifically, that the F.D.I.C.'s ability to fulfill its statutory objective of collecting on the assets of the failed banks would be impaired. There was evidence that assets of the Elio Family Trust had been expended on Carmen Elio's behalf, and that Elio had continued to enjoy the benefit of the assets transferred to the Seaview Realty Trust, thus permitting the inference that the assets of the trusts were still within Elio's control. The district court also reasonably found that the F.D.I.C. had been frustrated in its attempts to obtain discovery with respect to the assets of the two trusts and of FH Financial Services, 8 and with respect to the merits. The district court reasonably found that the information previously provided by Carmen Elio himself as to their assets was not credible. 47 At the hearing on February 3, 1994, the court heard representations of counsel that FH Financial Services had once been owned by Carmen Elio, that it may subsequently have been transferred to one of Elio's children, that its present ownership was unknown, that its only known asset was a third mortgage on the Elios' home in Osterville, Massachusetts, that the current state of its business was unknown, and that the F.D.I.C. still sought discovery from it. The court extended the appointment of the trustee to FH Financial Services to verify its assets and ensure its compliance with the court's earlier order. As there was a void of information concerning FH Financial Service's business, assets and ownership, the court could reasonably have found that without the extension of the trustee to FH Financial Services, the F.D.I.C.'s ability to protect its rights and pursue its claim would be impaired. 48 We hold that there is ample evidence of harm in the record to satisfy the reduced standard required by 12 U.S.C. Sec. 1821(d)(18) and (19). 49