November 5, 2019, New York – Last week, John S. Pereira, as Chapter 7 Trustee for the estates Woodside Management, Inc., Tunnel Taxi Management, LLC, Downtown Taxi Management, LLC and 28th Street Management, Inc. (the “Debtors” ) initiated adversary proceedings against forty (40) defendants. The complaint alleges that the Defendant Evgeny Freidman (“Freidman”), as a sole shareholder and president of the Debtors and the other corporate defendants, created a complex financial web. The Trustee sought to substantively consolidate the Debtors, Defendant Freidman, along with all the other corporate defendants. The complaint alleged that the Debtors and the corporate defendants are all alter egos of Freidman. The Trustee reasoned that Freidman’s commingled of all his businesses without regard for the corporate form to enrich himself at the expense of creditors. The Trustee further sought to recover fraudulent transfers and to be compensated, on behalf of the Debtors’ estates, as a result of Freidman’s malfeasance. The complaint also alleged that Freidman’s tangled financial web should be brought to light to explain the disposition of the Debtors’ assets, including access to limited and incomplete financial records. According to the Trustee, alleged funds had been slowly siphoned out of the Debtors and into Freidman’s other business ventures, including the corporate defendants.
The summons had not been issued yet. Honorable Judge Carla E. Craig is presiding over the Debtors’ bankruptcy case. The bankruptcy case no. is 17-46310 in United States Bankruptcy Court for the Eastern District of New York.