A trustee for Nelson Bunker Hunt's creditors has filed a lawsuit seeking to recover a $3.9 million investment Hunt made in a Salt Lake medical-equipment company.
The suit filed Friday in U.S. Bankruptcy Court by trustee Carter Pate accuses Alan L. Himber, chairman of BSD Medical Corp., of possible violations of federal tax and securities laws.The suit says Himber used Hunt's investment to gain control of the company and then dissipated the funds through improper stock purchases and payment of dividends.
Himber's attorney, William Ravkind, said of the suit, "There's not much there, and what is there is frivolous." Ravkind characterized his client as a businessman who "took over a broke company and turned it around."
Beginning in 1983, according to the suit, Himber persuaded Hunt to invest in promising high-technology companies, including BSD, a small, over-the-counter company that makes heating devices to treat cancerous tumors.
In the suit, Pate says Hunt, faced with mounting creditors' claims, transferred control of his assets to friends and family members by investing in newly formed "shell" corporations. Hunt would buy preferred stock, which promised a fixed return, while family members or family trusts would pay a nominal sum for the common stock and would receive the benefit of any gain in value.