Defendants Sued For Allegedly Using Debtor as a Personal “Piggybank”
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July 27, 2022, US Bankruptcy Court for District of Delaware – The Official Committee of Unsecured Creditors (the “Committee”) of the Aliera Companies, Inc., et al. (the “Debtors”) sues Defendants Burdette Atlanta, LLC (“Burdette LLC”) and Shelley Steele (“Steele”) to avoid and recover alleged transfers.
According to the complaint, the Debtors were established by an alleged “convicted felon”, Timothy Moses (“Moses”) and his spouse Steele. The Committee alleges that Moses and Steele conducted the business of Debtor in an “illegitimate” manner to enrich themselves at the expense of the Debtors’ arm’s length creditors and consumer members of an affiliate entity.
The complaint further claims that Steele established Burdette LLC to purchase a luxury residence in Sandy Springs, Georgia, allegedly using the alleged “illegal funds” obtained from the Debtors. Steele allegedly caused Debtor Aliera Companies to transfer $100,000 to a realtor to fund Burdette’s purchase of the Sandy Springs property. Later, the Debtors also allegedly transferred $905,000 to Steele which was ultimately transferred to Burdette LLC. The Committee claims that the Debtors received no consideration for these transfers. Burdette LLC allegedly used these funds to purchase the Sandy Springs property.
The rest of the property purchase price was financed by the seller of the property, Burdette Holdings, LLC (“Holdings LLC”) by taking a note and security deed. Steele allegedly caused Aliera to pay $1.4 million to satisfy Holdings’ note and security deed. The Committee also alleges that the Debtors loaned Steele not less than $8,305,841.68 which remains allegedly outstanding.
The Committee seeks to avoid and recover the alleged transfers made to the realtor, Steele and Burdette for the purchase of Sandy Springs property under 11 U.S.C. § 544. The Committee also claims that it is entitled to a judgment for the outstanding loan amount of over $8 million plus accrued interest, costs, expenses and attorneys’ fees.
Official Committee of Unsecured Creditors v. Burdette Atlanta, LLC et al. (In re Aliera Companies, Inc., et al.), AP No. 22-50400 , US Bankruptcy Court for Delaware.