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Home New Cases Synchrony Sued for Receiving Alleged “Fraudulent Transfers” from V-Twin Concepts, LLC

Synchrony Sued for Receiving Alleged “Fraudulent Transfers” from V-Twin Concepts, LLC

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May 03, 2022, Southern District of Florida – Chad S. Paiva, the Trustee for the V-Twin Concepts, LLC (“Debtor”) prefers a complaint against Synchrony Financial and Synchrony Bank (“Defendants”) to avoid and to recover alleged “constructive fraudulent conveyances”.  

The Trustee avers that the Debtor “never used” a payroll company or kept any accounting ledgers and that it “never filed any tax returns”. According to the complaint, the Debtor “had no other employee” other than Donald E. Schmelyun, owner and manager of the Debtor. The Trustee claims that Schmelyun used the Debtor’s funds to pay for personal expenses and for the expenses of an unrelated sole proprietorship that Schmelyun also controlled. He also contends that Schmelyun, as principal of the Debtor, reported the Debtor’s income “on his own personal tax return”.  

The complaint claims that the Debtor was not capitalized and “was completely insolvent” within the four years prior to the Petition Date and that the Debtor’s business relied upon a “series of secured business loans” and “financial schemes” to stay afloat during that time period.  The Trustee asserts that the Debtor sent Synchrony an aggregate of $141,311.85 in the four years prior to the Petition Date and that the Debtor “received less than a reasonably equivalent value” in exchange for making these transfers to the Defendants. 

Therefore, the Trustee seeks a judgment against the Defendants determining that the $141,311.85 of the transfers are allegedly “fraudulent and avoidable” pursuant to 11 U.S.C. §§ 544(b) and 548(a)(1)(B) and Florida Statutes §§ 726.105(1)(b) and 726.108(1). 

The case is Paiva, Chapter 7 Trustee v. Synchrony Financial et al., (In re V-Twin Concepts, LLC), AP No. 22-01150, US Bankruptcy Court for the Southern District of Florida.

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