Jersey City Community Housing Corporation Seeks to Clawback Money; Complaint Alleges Multiple Claims against Named and Unnamed Defendants
April 5, 2022, New Jersey – Plaintiff Debtor Jersey City Community Housing Corporation filed an adversary complaint against LB-Honey Badger, LLC et al. to recover alleged post-petition transfers and fraudulent conveyances. The Complaint is filed against four named and eleven unnamed defendants. Plaintiff debtor “seeks to freeze any transfers and assert an equitable or other lien and obtain fair value or reconveyance of the properties.” The allegations in the Complaint are that the transfers were “not for fair value,” “substantial equity exists,” and that the transfers of properties to the Defendants were made with an actual intent to hinder, delay or defraud one or more creditors.” The Complaint alleges an actual and constructively fraudulent transfer claim as a result of the alleged transfers pursuant to various federal and state laws.
On July 20, 2021, Jersey City Community Housing Corporation filed a voluntary petition for relief under Chapter 11, Subchapter V of the Bankruptcy Code. The Bankruptcy Case No. 21-15863 is filed in the Bankruptcy Court for the District of New Jersey.