March 1, 2016
An owner of a company sold a $13.8 million resort property in contempt of bankruptcy order. The debtor could neither explain nor account for what happened to that money or the resort. The bankruptcy judge has taken a stand in this matter and is holding the debtor in contempt of court.
The Debtor has filed 6 appeals to get out of jail but the Judge is holding firm that he must explain more clearly where the money went.
In a 40-page opinion, the Bankruptcy Judge states the Debtor still fails to effectively trace the proceeds through his various accounts and there are major gaps. In his accounting documents.
The funds merely vanished that were paid to various members of his family?
The Judge feels that the continued “confinement” still has a coercive effect. The Debtor clearly knew that he was not to sell this asset.
The debtor is becoming a poster boy for consequences when you break a Court Order in Bankruptcy. He sold the resort but has been vacationing in a jail for one year and counting.