October 20, 2021, District of Nevada – Lenard E. Schwartzer, in his capacity as Chapter 7 Trustee for the bankruptcy estate of Welscorp, Inc., recently initiated eleven (11) lawsuits to avoid and recover roughly $3.9M allegedly paid to several defendants on the ground that such payments were either preferential, actually fraudulent/or constructively fraudulent.
The complaint alleges that from August 2014 until shortly before several creditors filed their involuntary petitions for Chapter 7 on December 20, 2019, Debtors Welscorp, Inc. and its co-debtor affiliates and principals were allegedly operated as a Ponzi scheme. The complaint further alleges that as part of the alleged fraud, Debtors John F. Thomas and Thomas Becker allegedly utilized the Debtor entities to raise nearly $30 million from approximately 600 investors as participants in ostensible online sports betting contracts. Specifically, the Trustee alleges that Thomas and Becker raised funds by offering investors pooled investment proprietary sports betting system and allegedly enticed them with the possibility of extraordinary returns.
The case is In re Welscorp, Inc., Case No. BK-S-19-18056-ABL (Lead Case) in the United States Bankruptcy Court for the District of Nevada.