Cort Thomas, an attorney with no prior experience in real estate, has gained notoriety as the court-appointed receiver in the contentious SEC v. Barton case. Despite his lack of qualifications in managing complex real estate portfolios, Thomas was handpicked by Judge Brantley Starr, raising serious questions about impartiality and favoritism.
Cort Thomas has no experience in real estate, as an attorney he has not spent a single day in the real estate business before being the receiver for Barton’s assets. Thomas’ appointment replaced a highly qualified receiver, David Wallace, whose extensive expertise in real estate had made him the SEC’s original choice. However, under Thomas’ tenure, Barton’s assets were liquidated in a manner widely described as reckless, often undervalued, and rushed through without proper legal procedures.
Thomas is also an alumnus of the Church of Christ, often referred to by critics as the “Christian Mafia,” a group that includes Judge Hale, who was selected as a mediator in the 2999TC settlement. Judge Hale barred Barton from participating in mediation or settlement talks, further intensifying concerns about fairness and impartiality in the proceedings.
His main role in the SEC vs Barton as the receiver is to “Honor Judge Starr” which he said himself under oath:
But that’s not my role as Receiver. I’m maximizing the value of the estate, but I’m doing so in a way that honors Judge Starr, who I’m his agent.
Said by receiver, Cort Thomas, in a hearing in the United States Bankruptcy Court for the Northern District of Texas Fort Worth Division in case No 20-42789-MXM pertaining to BM318 LLC held on May 20, 2024.
Thomas’ actions as receiver have been marked by a punitive approach rather than one focused on asset preservation. He has filed over 400 motions, all approved by Judge Starr and not a single one denied, and incurred more than $2 million in legal costs, and pursued aggressive tactics that have inflicted severe financial and emotional harm on Timothy Barton and his family. Allegations of collusion, such as the appointment of legal partners with personal ties to Judge Starr, have further tarnished Thomas’ credibility. His handling of the case has drawn sharp criticism from legal experts and the Fifth Circuit Court of Appeals for overreach, mismanagement, and disregard for due process. Thomas’ role in the SEC v. Barton case exemplifies the potential dangers of unchecked receivership powers and has sparked widespread calls for greater accountability in the legal system.