Shelton Brother Trustee Seeks Turnover of Property Based on Alleged “Alter Ego” Claims
January 20, 2022, District of Massachusetts – Trustee Steven Weiss for the bankruptcy estate of Shelton Brother, Inc. initiates a lawsuit seeking a declaratory judgment that Defendant C.E. Boxmover, LLC and C.E. Boxmover of Oregon, LLC are allegedly “alter egos” of Debtor Shelton Brothers, Inc.
Weiss alleges that the Defendants’ assets have always been the property of the bankruptcy estate and hence all interests of Defendant Daniel Shelton in C.E. Boxmover and C.E. Boxmover of Oregon and all property standing in the name of the Defendants must be turned over to the Trustee for the benefit of the bankruptcy estate.
The Trustee explicitly asserts in its complaint that the Defendants are “alter egos” of the Debtor based on several factors such as – “being owned by a common owner”; the “confused intermingling of business activity, assets, and management of Debtor with the Defendants”; “no separate operation of the Defendants”; “admissions of Defendant Daniel Shelton” that he considers the two defendant entities as part of the Debtor, et al.
In re Shleton Brothers, Inc., Case No. 20 – 30606