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Home New Cases DC Solar Trustee Brings a Clawback Action Against Ahern Rentals, Inc. and Xtreme Manufacturing For $33 Million

DC Solar Trustee Brings a Clawback Action Against Ahern Rentals, Inc. and Xtreme Manufacturing For $33 Million

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January 14, 2022, District of Nevada – Trustee Christina W. Lovato for the bankruptcy estates of DC Solar Solutions, Inc., DC Solar Distribution, Inc., DC Solar Freedom, Inc., and Double Jump, Inc. (“Debtors”) commences an adversary proceeding against Ahern Rentals, Inc. and Xtreme Manufacturing, LLC  to avoid and recover certain transfers allegedly made to the Defendants as alleged preferences and fraudulent conveyances. The Trustee also seeks to disallow Defendants’ proofs of claim filed in the Debtors’ bankruptcy cases.

The complaint alleges that certain DC Solar insiders, including Jeff Carpoff, perpetrated a Ponzi scheme through DC Solar and other entities. Specifically, the complaint alleges that within four years of the Debtors’ petition date, Carpoff allegedly caused DC Solar Solutions, Inc. and DC Solar Distribution, Inc to make transfers totaling $17,272,547.32. to Ahern Rentals. The complaint further contends that Carpoff allegedly caused DC Solar Solutions, Inc. to make the transfers totaling $15,826,270.04 to Xtreme within four years of the Debtors’ petition date. As a result, the total transfers allegedly made to Ahern Rentals, and Xtreme is $33,098,817.36. 

In her complaint, Lovato also alleges that Ahern Rentals and Xtreme were insiders of DC Solar because Ahern Rentals and DC Solar and Xtreme and DC Solar through their senior executives Carpoff (on the one hand) and Don Ahern and Evan Ahern (on the other hand) had a very close relationship. Further, Lovato argues that the transactions between Ahern Rentals and DC Solar and Xtreme and DC Solar were allegedly negotiated and implemented at less than arm’s length. The complaint also contends that DC Solar did not receive reasonably equivalent value in exchange for alleged transfers and that Carpoff allegedly caused DC Solar to make the transfers with the actual intent to hinder, delay or defraud the Debtors’ creditors.

The case is In re Double Jump, Inc., Case 22-05001- GS

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Jones & Associates

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