Avis Budget Group and the federal government yesterday filed suit in U.S. District Court in Hartford against former Cendant Chairman Walter A. Forbes, his family members, two trusts, and others for at least $22 million in cash, securities, and real estate.
The assets were allegedly transferred to avoid creditors and a more than $3.2-billion restitution order as part of Forbes conviction in 2006 for conspiracy to commit securities fraud and making false statements, according to The Wall Street Journal and other news reports.
U.S. Attorney Christopher J. Christie of New Jersey, who announced the civil suit, said Forbes engaged in “a flurry of legal and accounting activity” to hide assets as the accounting fraud involving more than $500 million in inflated revenue at Cendant came to light. Forbes is serving more than 12 years in a federal prison for his role in the fraud.
Forbes’ former attorney, Robert T. Tucker; his wife, Caren; and his two daughters have also been named in the suit, according to the WSJ, along with FG Enterprises and the trustee for another trust, identified only as John Doe Trust.
Forbes was chief executive officer of CUC, Cendant’s predecessor,before it merged with travel and real-estate services company HFS Inc.to form Cendant in December 1997. Cendant’s brands included Ramada,Howard Johnson, Avis, Coldwell Banker and Century 21.