Attorney fighting receiver, state agency over Harmon case

Wednesday, Jan. 19, 2000 | 12:10 p.m.

An attorney for investors in the failed Harley L. Harmon Mortgage Co. has criticized the receiver and a state agency for their handling of the company's assets.

But neither of John Netzorg's targets agree with his assessment.

"I'm not going to make everybody happy, but from my perspective it's gone very well," said Bernie Chippoletti, the Harmon receiver.

Doug Walther, the senior deputy attorney general who represents the state Financial Institutions Division, claims some of Netzorg's analysis is "just plain wrong."

The debate is likely to continue Jan. 25 when Chief Clark County District Judge Lee Gates holds a hearing in the case involving about 400 investors who put $22 million into Harmon's firm.

In court filings, Netzorg challenged the way the state handles failed mortgage companies, claiming it violates federal and state constitutions. Walther rejects that argument.

Netzorg also criticized the state and the Harmon receiver for failing to file lawsuits against Harmon and other parties in an effort to recover funds for investors.

He urged Gates to reject the receiver chosen by the state, accountant George Swarts, and to name the attorney and mortgage broker he selected, Tom Lea.

Walther said Netzorg is proposing the judge "turn the management rights over to a disorganized group of investors who will ... have to incur additional expense to get organized and enforce their rights in the loans."