Discover Bank Must Return Transfers It “Fraudulently Received”, Alleges Better Way Siding and Windows Inc. Trustee
March 11, 2021, Central District of Illinois – Trustee Charles E. Covey of the estate of Better Way Siding and Windows Inc. (“Debtor”) initiated a complaint against Discover Bank a/k/a Discover Card a/k/a Discover Financial Services a/k/a Discover Products Inc. (“Defendant” ) to recover certain payments as “fraudulent conveyances.”
The Trustee alleges that the Debtor transferred funds in the total amount of $53,750.00 to Defendant out of the Debtor’s account ending in 2503 at Morton Community Bank within two years before the bankruptcy. Allegedly, the Debtor “did not receive any reasonably equivalent value in exchange for the transfers.” Further, any obligations incurred by the Debtor to make the alleged transfers did not benefit the Debtor.
Thus, the Trustee requests the Court to preserve the alleged “fraudulent transfers” for the benefit of the estate and avoid the said transfer of $53,750.00. The Trustee urges that the Court should enter judgment in its favor and against the Defendant under §§ 548(a)(1)(B), 550(a)(1) and § 544(b)(1) of the Bankruptcy Code and under 740 ILCS §§ 160/5(a)(2) and 8(a)(1).
In addition to the Discover Bank, the Trustee has also sued Pekin Life Insurance Company, Fortress Bank, American General Life Insurance Company, American International Group, Inc. for fraudulent transfers in Better Way Siding and Windows Inc. bankruptcy.