LNA Associates Trustee Charges Happy Breakfast Club & Harry Kaminsky of Alleged Fraud in a Ponzi Scheme; Files Lawsuit Against 93 Defendants
March 1, 2022, Eastern District of New York – Plaintiff R. Kenneth Barnard, solely in his capacity as the Chapter 7 Trustee of the bankruptcy estate of Gregory N. Altieri d/b/a LNA Associates Ltd. (“Debtor”), sues 13 named and over 80 unnamed defendants to avoid and recover alleged fraudulent transfers under Sections 544, 548, 550 of the Bankruptcy Code and state laws. The complaint states that the Trustee filed the legal action to recover initial transfers from the Debtor to defendant Happy Breakfast Club, Inc. (“HBC”) as alleged fraudulent conveyances occurred in connection with a Ponzi scheme. The Trustee also seeks to avoid and recover both the immediate and mediate transfers and other transfers allegedly made by defendant HBC to all defendants and recover damages relating to the failure of all defendants to repay the HBC the immediate or mediate transfers. The Trustee argues that as a result of the alleged fraudulent scheme, all the alleged transactions between the Debtor and HBC should be collapsed, and each defendant should allegedly be deemed to be initial transferees of the total transfers, for whose benefit the transfers were made, under Bankruptcy Code section 550(a)(1).
Trustee asserts that Defendant HBC and Harry Kaminsky (who was allegedly intricately involved in the Debtor’s financial transactions) have allegedly held the Debtor’s assets and kept them out of the reach of Debtor’s creditors and the bankruptcy estate. Additionally, the Trustee accuses Harry Kaminsky of allegedly operating HBC as his own personal piggy bank and using the Debtor’s funds to pay for his girlfriend’s needs and his own personal purposes. Specifically, the complaint argues that the Debtor deposited $814,000.00 into the HBC Chase account and from the $814,000.00 HBC received from the Debtor, Harry Kaminsky, through HBC, allegedly transferred a total of $607,089.28 to the other defendants.
The complaint further argues that despite the Trustee’s repeated demand, HBC and Harry Kaminsky have allegedly failed to turn over the alleged transfers that they allegedly received as a conduit to the Debtor’s Ponzi scheme.
In re Gregory N. Altieri d/b/a LNA Associates Ltd., Case No.: 20-71951 (REG)