In re Jie Xiao; In re LXEng, LLC (Bankr. D. Conn. 2019)

Represented unsecured creditor in investigating pre-bankruptcy asset transfers of individual and his closely held company, which both filed for Chapter 7 bankruptcy. The investigation uncovered that the debtor improperly used a pension plan to hide assets and substantially all of his non-exempt assets were transferred to his former spouse on the eve of bankruptcy as part of a consensual property settlement in their divorce. We assisted the Chapter 7 Trustees of the debtors’ bankruptcy estates in successfully prosecuting fraudulent transfer actions against the former spouse in the approximate amount of $2.5 million and obtaining a judgment that the debtor’s pension was not exempt from the reach of his creditors.