Bailey Glasser Wins Federal Appeal in $40 Million Fraud Case 

Bailey & Glasser, LLP won an appellate affirmance of a $40 million federal jury verdict on behalf of the Trustee of the MTE Litigation Trust, whose beneficiaries are financial institutions that lent nearly $500 million to MTE Holdings before that company’s 2019 bankruptcy. This matter held former company officers accountable for knowingly misrepresenting MTE’s financial condition to obtain continued access to loan proceeds.

At trial, Bailey Glasser showed that the lenders had been intentionally defrauded and recovered substantial compensation for the trust. On appeal, it established that the jury determinations were consistent and supported by substantial evidence. It also showed that the economic-loss rule did not bar the fraud claims.

In July 2026, the U.S. Court of Appeals for the Fifth Circuit rejected the defendants’ arguments against the verdict and affirmed in full, meaning the $40 million jury verdict stands.

The Bailey Glasser trial team consisted of partners Cary Joshi, Elliott McGraw, John Turner, and now-retired partner Robert Bell, along with paralegal Manny Rios. Partner Joshua I. Hammack led the appellate team, which also included lawyers Allison A. Bruff, Hallie H. Arena, and Stephen C. Scott.

“The plaintiff’s interests have been vindicated,” said Cary Joshi after the original 2024 trial. “Our client knew they had been defrauded and the jury knew it, too.”

The appellate case is Thomas B. Bennett, Trustee for the MTE Litigation Trust v. Mark Siffin, No. 25-50217, in the United States Court of Appeals for the Fifth Circuit.