Obtained Judgment Denying Discharge and Assisted in Obtaining Multi-Million Dollar Judgments

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 substantially all of the individual debtor’s non-exempt assets were transferred to his former spouse on the eve of bankruptcy as part of a consensual property settlement in their divorce and, in the years prior to the bankruptcy filing, the closely held company had transferred more than $1.5 million to his former spouse. We thereafter successfully obtained a judgment denying the individual debtor’s discharge of his pre-petition debts under Section 727(a)(2)(A) of the Bankruptcy Code due to the fraudulent transfers on the eve of bankruptcy, and 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.