Sears Former CEO Accused of Profiting

A group of creditors has accused Eddie Lampert, former chief executive officer of Hoffman Estates, Ill-based Sears, of potentially profiting from the company’s decline and bankruptcy. 

According to USA Today, the committee that has been organized to represent the retailer’s unsecured creditors in court is accusing Lampert and his hedge fund ESL Investments (Greenwich, Conn.) of potentially structuring deals to gain an unfair edge. For instance, the group says Lampert could have leveraged his insider status to obtain more of Sears’ debt so that he could then obtain a beneficial position as a result of filing bankruptcy.

Sears representatives have declined to comment on the allegations but Lampert’s ESL stated it has consistently supported Sears Holdings in an effort to return to profitability.