May 4, 2021, Central District of California – Lev Investments, LLC, the reorganized debtor avers against Ruvin Feygenberg (“Ruvin”), Michael Leizerovitz (“Michael”), and Sensible Consulting and Management, Inc. (“Sensible” and collectively with Ruvin and Michael, the “Defendants”) and brings forth a 17-count complaint for “breach of contract” and “claim objections” against the Defendants. The amount at issue is in the neighborhood of $1.2 million.

The complaint contends that Sensible is the “alter ego” of Ruvin and Michael because there was allegedly a “unity of interest” between Sensible and Ruvin and Michael. Further, the complaint “objects to Sensible’s proof of claim”. The Sensible proof of claim asserts a security interest based on the recording of a deed of trust. According to the Debtor, no promissory note was allegedly executed at any time concerning the asserted deed of trust. The Debtor argues that the deed of trust “did not secure an obligation and should be re-characterized as a general unsecured claim.”

Besides, the complaint intends to recover damages against all defendants and seeks a declaratory relief that “the foreclosure process was improper.” The complaint further alleges that the Defendants “failed to perform their obligations under the agreement and hence breached the agreement.” As alleged in the complaint, as a result of Defendant’s breach of the agreement, Lev was “damaged in an amount to be proven at trial” and should result in, at a minimum, a “reduction” in the Sensible POC. The complaint also seeks a judgment against Michael and Ruvin establishing that (i) Sensible is their alter ego and (ii) Michael and Ruvin are personally liable for any claims against Sensible, including, but not limited to, any monetary damages awarded to Lev under the complaint, awarding attorneys’ fees and costs to Lev and for such further and other relief as is warranted under the circumstances.

The adversary proceeding in the Chapter 11 bankruptcy case of In re Lev Investments, LLC, Case No. 1:20-bk-11006-VK is currently pending in the United States Bankruptcy Court for the Central District of California, Los Angeles Division.