June 24, 2021, Southern District of Florida – Plaintiff Trustee Jacqueline Calderin for the bankruptcy estate of Quality Tile & Marble Distributors, LLC ( “Debtor”) recently initiated about 20 clawback actions to avoid and recover fraudulent transfers worth over $600k from several creditors under sections 544, 548 and 550 of the Bankruptcy Code, Chapter 726 of the Florida Statutes and Rule 7001 of the Federal Rules of Bankruptcy Procedure.
The Debtor is a tile contractor, specializing in ceramic & porcelain tile and marble installation. Two years ago in June 2019, the Debtor initiated the case by filing a voluntary petition for relief under Chapter 7 of the Bankruptcy Code. The largest case in the group so far is filed against ML Factors Funding, LLC for a return of about $111,515.00 as fraudulent conveyances. Complete Business Solutions Group, Inc., Emerald Group Holdings, LLC, Yes Capital Group LLC, Massachusetts Mutual Life Insurance Company are some of the other creditors that are sued for return of alleged fraudulent transfers.
The Trustee’s complaint avers that in the four years immediately preceding the petition date, several defendants allegedly received transfers of money from the Debtor that supposedly had no connection with or were not related to the Debtor’s business. According to the complaint, the Debtor was not indebted to the defendants and did not allegedly receive reasonably equivalent value in exchange for the transfers made. Furthermore, the Trustee alleges that the said transfers purportedly reflected the Debtor’s payments for personal expenses of its principals or other insiders to ensure the satisfaction of those debts while ignoring the Debtor’s creditors, as well as utilizing the Debtor’s assets to pay for non-Debtor obligations.
The case is In re Quality Tile & Marble Distributors, LLC, Case Number: 19-18401-AJC in the United States Bankruptcy Court for Southern District of Florida. Agentis PLLC is representing the Trustee in the Debtor’s bankruptcy case. Honorable Bankruptcy Judge A. Jay Cristol is overseeing the Debtor’s case.