Emporia Property Group Trust Charges Diamond Innovations To Turn Over Debtor’s Assets
October 6, 2021, District of Kansas – Plaintiff, Sharon Stolte as the liquidating agent of Emporia Property Group, LLC Liquidating Trust, brings an adversary proceeding against Defendants Diamond D Innovations and its owner, Robert T. Dechantis. Through its complaint, the Trust seeks to compel the Defendants to deliver and turn over to the Plaintiff, and account for, certain assets of the Debtor that are allegedly in the possession, custody, or control of the Defendants, under 11 USC § 542 of the Bankruptcy Code.
Plaintiff also seeks to avoid and recover from Defendants a “fraudulent transfer” of $87,545.50 allegedly made to Defendants for a renovation that the Defendants supposedly never commenced or completed under sections 548 and 550 of the Bankruptcy Code.
By way of background, Debtor was formed to purchase and renovate a hotel in Emporia, Kansas, and the Debtor’s business was funded with debt and equity financing. The Defendants were a contractor retained by Debtor to complete repairs on real property owned by the Debtor.
In re Emporia Property Group, LLC, Case Number: 19-22155