The Baton Rouge firm that runs a statewide law enforcement database is disputing the ownership of $4 million in bonds at the heart of an effort to force the company to reorganize in bankruptcy court.
Software developer Thinkstream operates the Louisiana Civil and Criminal Information Network. Thinkstream’s software ties close to 300 Louisiana law enforcement agencies together, allowing them to share information quickly and securely. The company also has law enforcement clients in California, Florida, Texas, Mississippi and Georgia.
TSB Ventures claims it owns the bonds, and that with penalties and interest included, Thinkstream owes it more than $9 million. TSB is trying to force Thinkstream to reorganize under Chapter 11 of the U.S. Bankruptcy Code.
In court records, Thinkstream denies TSB’s claims and asks the bankruptcy court to force TSB to pay compensatory damages, punitive damages and attorneys fees and costs.
Thinkstream claims in its court filing that the $4 million in bonds belong to 112 local investors, not TSB Ventures, a Folsom-based company owned by Walter Morales and Jose Canseco. Thinkstream claims the original bondholders are victims of a complex shuffling of the bonds’ ownership.
Attorneys for TSB could not be reached for comment.
In its bankruptcy court filing, Thinkstream said the bond dispute began about the same time Morales and his Commonwealth Advisors Inc. encountered investment troubles.
In 2012, the U.S. Securities and Exchange Commission filed a federal lawsuit claiming Morales defrauded investors of millions of dollars by concealing losses in mortgage-backed securities in 2007 and 2008. Morales has denied and is fighting those allegations.
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