Trustee Steven Weiss Accuses its President Of Alleged Breach of Fiduciary Duty, Conversion, and Turn Over Of Property
June 9, 2021, District of Massachusetts – Trustee Steven Weiss for the bankruptcy estate of Troiano Trucking, Inc. & Troiano Realty, LLC (“ Debtors”) recently initiated an adversary proceeding against two individual defendants, seeking damages for breach of fiduciary duty, for conversion and turn over of property of the bankruptcy estate.
Defendant Mark Troiano was the president, treasurer, and director of Debtors. Defendant O’Leary was employed as a truck driver for the Debtor Troiano Trucking. The Trustee had entered into an agreement, approved by the Court to sell all assets for the Debtors to a company named Feedback Earth, Inc. Under the terms of the agreement, the Trustee and the Debtors agreed to continue operating the business in the ordinary course. It was agreed that upon closing all parties in possession of assets of the Debtors must surrender the assets to Feedback Earth, Inc.
The Trustee argues that despite being aware of the terms of the agreement, the Defendants attempted to convert certain of Debtors’ assets to their use to set up a new business. Defendants allegedly took possession of a number of trucks leased by the Debtors and tried to take over accounts for hauling water that had been performed by Trucking to themselves. The Trustee argues that the Defendants knew that their actions in diverting assets of the Debtors and diverting long-standing customer of the Debtors to a new enterprise would cause harm to the Trustee by damaging the value of the Debtor’s business operations. Thus, the Trustee accuses the Defendants of willful and malicious conduct. The Trustee contends that Defendant Troiano owed fiduciary duties to the Debtors, its creditors, and the bankruptcy estate. The Trustee seeks damages for Defendants’ breach of fiduciary duty and defalcation in his obligations. The Trustee also seeks issuance of a temporary restraining order against the Defendants and any parties acting in concert with them to prevent immediate and irreparable harm to the bankruptcy estate.
The case is In re Troiano Trucking, Inc., Troiano Realty, LLC in the United States Bankruptcy for District of Massachusetts. Shatz, Schwartz, and Fentin, P.C. are representing the Trustee in the bankruptcy case.