Synergy Law Trustee Seeks Summary Judgment on its $1.8 Million Clawback Action Against TAS, LLC
January 31, 2022, District of Columbia – Marc E. Albert, as Trustee for the bankruptcy estate of Synergy Law, LLC, moves for summary judgment against TAS, LLC to avoid and set aside the $1,845,061.00 that was “fraudulently transferred” to TAS under §547 and §548 of the Bankruptcy Code.
Trustee Albert claimed in the complaint that Synergy was “engaged in an unlawful mortgage relief scam” that “falsely” promised loan modifications to financially distressed homeowners. In addition, the Trustee argued that TAS “knowingly assisted Synergy” in violating the Federal Trade Commission’s Mortgage Assistance Relief Services rule, which is codified as 12 CFR, Part 1015 and designated “Regulation O.” In its complaint, the Trustee also accused TAS of “operating deceptive websites” that allegedly attempted to gather leads from consumers seeking mortgage loan modifications through mortgage modification companies.
The Trustee sought to recover $94,800.00 as “90-days payments” claiming that these were made on account of invoices or indebtedness owed to TAS “for goods or services it previously provided” to Synergy. Next, the Trustee sought to recover $1,338,001.00 as “insider preferences” under Sec. 547, contending that TAS is an “insider of Synergy”. In addition to the 90-day and 1-year payments, the complaint asserts that $412,260.00 was allegedly transferred to TAS in the two years before Synergy filed for bankruptcy. The Trustee claims that TAS is liable for the acts of Synergy since “it provided substantial assistance to Synergy“.
Accordingly, the Trustee asserts that the 90-day payments, the 1-year payments, and the 2-year payments totaling $1,845,061.00 are “fraudulent transfer” payments and must be set aside under Section 548 of the Bankruptcy Code.
In re Synergy Law, LLC, Adversary Proceeding No.: 21-10006–ELG
