November 12, 2018, Northern District of Texas – The Debtors collectively operated a nursery under the name Zelenka Farms. Zelenka was one of the nation’s largest wholesale growers and distributors of container-grown shrubs, trees, perennials, roses, and groundcovers. The Defendant, our client, is a company engaged in the business of transportation …Read More »
June 23, 2018, Southern District of Texas – The Debtor, Brougher Inc, dba Forge USA, provided steel forging products and services online. The Defendant, our client, was engaged in the manufacturing of machinery and equipment for use in oil and gas fields. Our client had sold two ingots to the …Read More »
A Defendant May Be Entitled to Sec. 548 Defense When He Acts in Good faith and Without Knowledge of Debtors’ Ponzi Activities
October 17, 2018, Idaho – Debtor DBSI and its related entities were engaged in three main spheres of business and was purportedly engaged in a massive Ponzi scheme. It ran its business and entities as a unified enterprise under common ownership and control with a small group of insiders that …Read More »
A Trustee Could Avoid Only Partial Commission Payments Because Defendant Had No Knowledge of Debtor’s Ponzi Scheme.
October 15, 2018, Florida – The Debtors namely, Providence Financial Investment, Inc. and Providence Fixed Income Fund, LLC operated a Ponzi scheme that defrauded over 400 investors of approximately $64 million. The primary perpetrator of the Ponzi scheme, Anthony Buzaneli, was found guilty of the fraud and convicted of perpetrating …Read More »
A Plaintiff’s Complaints Fail to State a Claim for the Avoidance of the Overdraft Loan Repayment Transfers as Constructively Fraudulent Transfers.
October 10, 2018, Florida – Debtors Able Body Temporary Services, Inc., et al. was engaged in the business of providing staffing services. Briefly, Debtors’ principals, Frank and Anne Mongelluzzi, owned numerous companies (the “Mongelluzzi Entities”). The Mongelluzzi Entities maintained multiple deposit accounts at Defendant Regions Bank. Some of the Mongelluzzi …Read More »
A Bankruptcy Court Rules For Defendant as Trustee Fails to Plausibly Allege the Banks’ Awareness of the Fraudulent Scheme.
October 3, 2018, New York – Last year in August 2017, Irving H. Picard, the trustee for the liquidation trust of Bernard L. Madoff Investment Securities LLC (“BLMIS”) filed an amended complaint to recover avoidable transfers totaling approximately $156 million from the Defendants BNP Paribas S.A. and its affiliates. BNP …Read More »
Transfer of Money From a Debtor’s Creditor to Pay Off the Debtor’s Debt Was Not a Preference Because the Funds Were Earmarked
September 7, 2018, Northern District of Texas – Debtor Dependable Auto Shippers, Inc. (“DAS”) was a vehicle transport company that contracted both with individuals and with corporate customers. Individual customers paid DAS when they hired the company to transport their vehicles but DAS would bill corporate customers, issuing invoices payable …Read More »
August 28, 2018, New York – A group of investors that earned millions in Ponzi scheme proceeds from Bernie Madoff’s defunct investment firm urged a New York federal judge last month to overrule the recommendations of a bankruptcy judge and grant them judgment over a trustee’s efforts to claw back …Read More »
An Oklahoma Bankruptcy Court Dismisses a Trustee’s Complaint Because It Failed to State a Plausible Claim Under 11 U.S.C.S. § 547(b)
September 6, 2018, Oklahoma –On April 1, 2016, the six PostRock Debtors commenced a bankruptcy case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code. The Trustee brought the complaints, asserting causes of action under 11 U.S.C. §§ 547, 548 and 550 to avoid and …Read More »
August 14, 2018, Alabama – Debtor Bruno’s Supermarkets, LLC filed for bankruptcy under Chapter 11. The Trustee filed an adversary proceeding against Defendant Blue Bell Creameries, Inc. to recover monies the Trustee contended were owed by Blue Bell to the estate. Specifically, the Trustee sought to recover from Blue Bell …Read More »