Trustee Jordan E. Lubin Brings $5 Million in Clawback Actions in Allied Energy Services, LLC
February 18, 2022, Northern District of Georgia – Trustee Jordan E. Lubin, Chapter 7 for the bankruptcy estate of Debtor Allied Energy Services, LLC, brings lawsuits against twenty-three defendants to recover alleged preference and fraudulent transfers under Section 547 and 548 of the Bankruptcy Code. The Trustee asserts that the defendants have received transfers that are allegedly avoidable and recoverable as preferences and as “actual and constructively fraudulent transfers” under the Bankruptcy Code and the Georgia state law.
On January 22, 2020, an involuntary bankruptcy petition was filed against the Debtor in the United States Bankruptcy Court for the Northern District of Georgia. As per the records filed in the bankruptcy case, Clarence Dean Alford, Debtor’s President, and Chief Executive Officer, “engaged in a fraudulent scheme of selling investment notes through the Debtor.” As stated in the complaint, “Alford induced the investors to purchase the investment notes by misrepresenting Debtor’s financial health”, “exaggerating the Debtor’s expertise in developing energy projects,” and providing financial statements that “falsely created an impression that they were prepared or reviewed by certified public accountants.” It is also alleged in the bankruptcy records that the investor funds were “not deposited in escrow accounts as it was represented to the investors”, “were commingled in Debtor’s accounts”, and “used to pay for Alford’s personal expense.”
Some of the defendants against whom Trustee initiated lawsuits include: CCI Global, Inc., RGDD Development, LLC, Diving Living, LLC, Comprehensive Consulting International, LLC, et al. The law firm of Lamberth, Cifelli, Ellis & Nason, P.A. represents the Trustee, and Honorable Judge Jeffery W. Cavender presides over the Debtor’s bankruptcy case.