Gustech Communications Trustee Seeks to Recover $83k as Preference and Fraudulent Transfers from American Express Bank and Others, Says Debtor Paid Principal’s Credit Card Debt
March 18, 2021, District of South Carolina – Trustee Robert Anderson for the estate of Gustech Communications LLC (the “Debtor”) charges American Express Bank, FSB (“AEB”), American Express Centurion Bank (“AECB”), and American Express National Bank (“AENB”); (collectively the “Defendants”) under Sec. 547 and Sec. 548 of the Bankruptcy Code, seeking to set aside certain payments as a preference or fraudulent conveyances.
Debtor’s principal, Gustavo Santamaria (“Santamaria”) reportedly entered into a credit card account with AEB. Santamaria had an amount outstanding on its credit card. Allegedly, the Debtor transferred $83,168.05 to AEB towards the payment of the pending amount.
According to the Trustee, the credit card agreement was executed between Santamaria and AEB and, the Debtor was not a party to it. Hence, only Santamaria was liable for the charges and not the Debtor. The Debtor did not have a credit card with AEB. Thus, the Trustee argues that AEB did not take the transfers in good faith because it should have known that the Debtor was not liable under the terms of the cardholder agreements for Santamaria’s card. The Trustee asserts that since Santamaria was in control of the bank accounts, he made the alleged transfers from the Debtor to the Defendants for his obligations using the Debtor's funds. In return, the Debtor did not receive any consideration for the transfers.
Accordingly, the Trustee urges the Court to set aside the alleged transfers because they were made with the actual intent of defrauding the creditors. The Trustee reasons that the alleged transfers are a part of the assets and estate of the Debtor due to its fraudulent nature and hence they and should be returned to the Trustee.
The case is – In re Gustech Communications LLC, case number – 19-02716-HB in the United States Bankruptcy Court for the District of California.