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December 13, 2022, US Bankruptcy Court for Utah – Steven R. Bailey, the chapter 7 trustee (“Trustee”) of the estate of Empire Solar Group, LLC (“Debtor”), sues R&J Technical Services LLC (“RJT”), Ron Housekeeper (“Mr. Ron”), Jake Housekeeper (“Mr. Jake”) and others for an alleged fraudulent conveyance of $6.7 million.
According to the complaint, Mr. Ron and Mr. Jake are principals of R&J Technical Services LLC (“RJT”), R&J Equipment LLC (“RJE”), and R&J Real Properties LLC (“RJRP”). Debtor Empire Solar Group was allegedly owned by Mr. Ron, Mr. Jake, Amanda, and Abby. Debtor Empire, RJT, RJE, and RJRP have their bank accounts in Uinta Bank.
The Trustee claims that Mr. Ron and Mr. Jake planned to exit from the Debtor through a redemption agreement. The Trustee alleges that though the agreement was labeled redemption, the membership interests of Mr. Ron and Mr. Jake were actually transferred to Amanda and Abby while the Debtor agreed to pay more than $2.5 million to Mr. Ron and Mr. Jake. The agreement also allegedly relieved Mr. Ron and Mr. Jake of their personal obligations related to the credit line extended to the Debtor.
The Trustee further alleges that the Debtor paid more than $6 million in satisfaction of the loans taken by RJT and RJE from the Uinta Bank without receiving any consideration in exchange for the payment.
The Trustee seeks to avoid and recover these transfers as fraudulent conveyances under section 548 of the Bankruptcy Code.
Bailey v. R&J Technical Services, LLC (In re Empire Solar Group, LLC), AP No. 22-02094, US Bankruptcy Court for Utah
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