First Premier Capital LLC v. Republic Bank (In Re Equipment Acquisition Resources Inc.)

CUDAHY, Circuit Judge.

This is a case about the approval of a settlement plan that could potentially prejudice the litigation stance of a third party. Equipment Acquisition Resources, Inc. (EAR) was a corporation engaged in the sales and service of semiconductor manufacturing equipment. EAR defrauded various creditors in what was apparently a Ponzi scheme. The company’s illegal activity included tricking banks into financing non-existent or grossly overvalued equipment and pledging certain pieces of equipment multiple times to different creditors. After the fraud was discovered, EAR filed for…