November 2, 2021, Northern District of Texas – Trustee Diane G. Reed for the bankruptcy estate of The Lasalle Group, Inc. (“Debtor”) files an adversary proceeding against Defendant MWW Partners Consulting, LLC (“MWW”) to avoid and recover a transfer as an alleged fraudulent conveyance under Section 544, 548, and 550 of the Bankruptcy Code.
The complaint alleges that The Lasalle Group assigned and transferred certain stocks to MWW and received no consideration in exchange either from the Debtor or its CEO, Mitchell Warren. The complaint further asserts that MWW is allegedly an insider of LaSalle by virtue of common ownership of MWW and the Debtor. Finally, the complaint contends that Debtor’s CEO allegedly made the stock transfer to MWW with actual intent to hinder, delay, and defraud LaSalle’s creditors in recovering the debts owed to them by removing a valuable asset from the Debtor.
The Trustee enlists various badges of fraud to evidence MWW’s and Warren’s alleged actual fraudulent intent, such as transfer being made to an insider, concealing the transfer from Debtor’s creditors, etc. Accordingly, the Trustee urges the Court to award judgment to avoid the stock transfer and direct MWW to return the shares.
In re The Lasalle Group, Inc. Case No. 19-31484-SGJ-7