The Mastro bankruptcy — a timeline

Sept. 30, 2008: In letter to "Friends & Family" investors, Michael R. Mastro reassures them that, despite the real-estate downturn, "our organization is strong and healthy."

July 10, 2009: Columbia State Bank, First Sound Bank and Venture Bank file a petition to force Mastro into Chapter 7 bankruptcy, contending he owes them a total of $9.7 million and is not paying debts as they come due.

Aug. 20, 2009: After at first resisting bankruptcy, Mastro agrees to accept it and have his real-estate and other assets liquidated and dispersed to creditors.

Sept. 9, 2009: Mastro files first financial statements with bankruptcy court, indicating liabilities exceed assets by more than $300 million.

Sept. 29, 2009:Court-appointed bankruptcy trustee James Rigby sues Mastro, contending that before bankruptcy he engineered series of transfers to put his Medina mansion and other assets out of reach of creditors. Mastro later denies the allegations.

Oct. 1, 2009: The state Department of Financial Institutions charges Mastro's dealings with the so-called "Friends & Family" investors violated state securities law. Mastro later denies the allegations.

Jan. 8, 2010: Without admitting guilt, Mastro agrees to accept proposed state sanctions.

Feb. 19, 2010: Mastro attorney James Frush reveals that the U.S. Attorney's Office is investigating Mastro.

March 3, 2010: The Office of the U.S. Trustee, a branch of the Justice Department, sues to block bankruptcy court from issuing a "discharge" order that would relieve Mastro of the obligation to repay his debts — the reason most people file for bankruptcy protection. U.S. Trustee contends Mastro has concealed assets and made false statements.

April 14, 2010: Mastro agrees not to seek discharge order. U.S. Trustee drops suit.

Source: Seattle Times archives