Trial date set for area bank

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Trial date set for area bank
2006-09-29
The first trial in the many lawsuits surrounding the collapse of the Lunenburg plastics company Gitto Global Corp. will begin on Jan. 22, according to M. Ellen Carpenter, Tradex Corp.'s bankruptcy trustee. The trial comes in response to Carpenter's federal lawsuit against Clinton Savings Bank, in which she claims bank executives knew of a check-kiting scheme orchestrated by Gitto Global executives, and failed to shut it down. Carpenter represents the bankruptcy estate of Tradex, a company that served as Gitto Global's landlord and was owned by Charles N. Gitto Jr., the plastics company's former chairman. Tradex declared bankruptcy in February in 2005, several months after Gitto Global did. Tradex also provided assets to Clinton in July 2004 to secure a bank loan given to a shell company allegedly created by a Gitto Global executive solely for the check-kiting scheme.
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