February 17, 2022, Northern District of Georgia – Trustee Jordan E. Lubin for the bankruptcy estate of Debtor Allied Energy Services, LLC initiates adversary proceedings against The Dynasty Group, LLC, Nashville Insiders, LLC, Brody Johnson Band, LLC, and a few individual defendants to avoid and set aside alleged preferential and fraudulent transfers pursuant to Sections 544, 547 and 548 of the Bankruptcy Code. The individual defendants include C.H. Chen, Eric Scott Smith, and Shirley Ann Smith.
Trustee Lubin contends that Allied Energy, by and through Dean Alford, allegedly made payments and transfers from the Debtor’s accounts to accounts in the name of Dean Alford or in the names of entities controlled by Dean Alford, including Defendant Dynasty. Lubin further contends that Dean Alford allegedly had control or decision-making authority over Dynasty. Additionally, the complaint asserts that the president and CEO of Dynasty, E. Smith, allegedly had actual knowledge of Debtor’s fraudulent scheme and alleged intent to hinder, delay or defraud creditors.
Specifically, the complaint contends that between March 13, 2017, and July 9, 2019, Debtor allegedly transferred $15,936,000.00 to Dynasty (“Dynasty Transfers”) and a total of $208,050.00 to Shirly Ann Smith to defraud Debtor’s creditors and investors. Next, the complaint contends that Dynasty inturn allegedly made transfers to Chen, Brody Johnson, Nashville Insiders, Shirly Ann Smith, and Eric Scott Smith. According to the Trustee, these transfers allegedly represent transfers to an immediate transferee of Dynasty, which was the recipient of Dynasty Transfers.
Specifically, Lubin argues that Dynasty paid a total of $5,888,715.00 to Chen, a total of $106,500 to Brody Johnson, a total of $575,500 to Nashville Insiders, $175,000 to the accounts owned and controlled by Eric Scott, and a total of $208,050.00 to the accounts owned and managed by Shirly Smith.
The Trustee argues that the alleged transfers were made with actual intent to hinder, delay, or defraud creditors of Debtor and were the transfer of an interest of Debtor in property within the meaning of Sections 101(54), 544(a), 548(a) of the Bankruptcy Code. Additionally, the Trustee argues that the Debtor allegedly did not receive fair consideration in exchange for the alleged transfers. The Trustee also seeks to recover $3,260,000.00 in Dynasty Transfers as preferences under Section 547 of the Bankruptcy Code.
In re Allied Energy Services, LLC, Case No. 20-61244- JWC
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