Did Sharrock conceal assets?

7/29/2019 Did Sharrock conceal assets?

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THE UNITED STATES BANKRUPTCY COURTNORTHERN DISTRICT OF OHIO

EASTERN DIVISION

In re:

David R. Sharrock Case No. 12-62878 RKDebtor Chapter 7

JUDGE Russ Kendig

Daniel M. McDermott, Adv. Pro. No.United States Trustee, Region 9

Plaintiff

v.

David R. SharrockDefendant

COMPLAINT TO DENY DISCHARGE OF DAVID R. SHARROCK

Now comes Daniel M. McDermott, the United States Trustee for Region 9, and hereby

states the following in support of his complaint to deny the discharge of chapter 7 debtor

David R. Sharrock.

PARTIES

1. Plaintiff, Daniel M. McDermott (“United States Trustee”), is the United States

Trustee appointed for Region 9 and has standing to bring this proceeding to deny the

discharge of David R. Sharrock under 11 U.S.C. Sections 307 and 727(c).

2. Defendant is David R. Sharrock, the debtor in this case.

JURISDICTION

3. This is an adversary proceeding in which the United States Trustee seeks

denial of the discharge of the Defendant under 11 U.S.C. § 727 and Rule 7001(4) of the

Federal Rules of Bankruptcy Procedure.

13-06087-rk Doc 1 FILED 07/26/13 ENTERED 07/26/13 09:59:58 of 41



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4. The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 1334 and

157(a) and the “Referral of Title 11 Matters in the U.S. Bankruptcy Court for the Northern

District of Ohio,” entered under Order No. 2012-7. It is a core proceeding over which this

court has jurisdiction under 28 U.S.C. § 157(b)(2)(J).

5. Venue is proper in this Court as provided in 28 U.S.C. § 1409.

6. This complaint is timely filed pursuant to Bankruptcy Rules 4004(a) and (b).

BACKGROUND and PROCEDURAL HISTORY

General Background

7.

The Defendant is married with no dependents. Defendant’s spouse is Doris A.

Sharrock. On the date he filed his bankruptcy petition, Defendant owned multiple rental

properties, both individually and through various business entities which he controlled.

Beginning in the late 1990s, the Defendant, individually, and in the name of Equity Lenders

Mortgage Brokers Co., and D & D Rentals, borrowed money from various private investors.

In general, the Defendant agreed to repay the borrowed funds at set terms ranging from one to

six or more years, and to make interest payments over time at interest rates ranging from eight

to twelve percent. An investor typically could elect to leave the funds invested after the

expiration of the original term, in which case the debt would continue to accrue interest and

the investor would receive a monthly payment. In most cases, the investors did not receive

any security for their investment even though Defendant testified that the private investment

funds were used to purchase properties.

8. To date, the documents and testimony provided by the Defendant have not

clearly established that the private investment funds were, in fact, used for real estate

investment purposes.




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9. The documents provided and the Defendant’s testimony suggest that over time,

Defendant repaid some of the private investors. As of October 23, 2012, the Defendant

represented in his bankruptcy schedules that these unsecured loans due to private investors

accumulated to approximately $4.82 million of unsecured debt.

10. It is the understanding and belief of the United States Trustee that the

Defendant, individually, and through various business entities, and with or through his

spouse, periodically purchased and sold rental properties which the Defendant, individually,

and through various business entities managed and rented.

11.

It is the understanding and belief of the United States Trustee that some

properties may have been purchased with private investor money and many properties were

purchased through bank loans. The Defendant, however, testified that he could not trace any

individual investment to any specific parcel of property.

12. The Defendant’s spouse, Doris A. Sharrock, executed a power of attorney in

April, 1993 which authorized the Defendant to take any acts and sign any documents in

connection with real estate. The power of attorney was recorded in Richland County.

According to Defendant, this power was given to him so that his wife would not have to go to

closings. It is the understanding and belief of the United States Trustee that the Defendant

signed paperwork on behalf of his wife at about 70% of the closings for properties which

were placed in her name.

13. On or about February 26, 2004, Doris A. Sharrock, the Defendant’s spouse,

created a trust. The trust, which bears the Defendant’s signature, designates the Defendant as

a successor co-trustee. Under the terms of the trust, the Defendant is also a beneficiary of the

trust.




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Business Entities and Operations


Defendant originally did business as D & D Rentals. Properties were owned by the

Defendant and/or his spouse individually or by them doing business as D & D Rentals.

Commencing around 2003, the Defendant formed various business entities. Such business

entities which the Debtor owned and/or controlled included: D & D Rentals, LLC; D & D

Rentals (a DBA); D.R.L. Properties, LLC; David Trust Properties, LLC; D & D Charity,

LLC; 92nd West 2nd Street, LLC; and 2701 Crider Road, LLC.

15.

It is the understanding and belief of the United States Trustee that in October,

2003, Doris A. Sharrock, the Defendant’s spouse, formed an entity called Herman Trust

Properties, LLC (“the Herman Trust”). It is the understanding and belief of the United States

Trustee that the Defendant controlled and managed properties owned by the Herman Trust

and in doing so controlled and managed the Herman Trust. Defendant collected rent.

Defendant interviewed prospective tenants. Defendant handled all advertising and paper

work related to the Herman Trust properties.

16. The Defendant testified that by 2003, around the time when these various

business entities were formed, he owed approximately $1 million dollars to individual

investors.

17. The Defendant testified as the business entities were formed, properties owned

by the Defendant and/or his spouse were transferred to the various business entities.

18. The Defendant testified none of the separate business entities which the

Defendant formed ever signed a promissory note in favor of any of the individual investors.




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19. The Defendant testified the Herman Trust never signed any promissory note in

favor of any of the individual investors.

20. It is the understanding and belief of the United States Trustee that,

notwithstanding the formation of the various LLCs and The Herman Trust, the Defendant

directed advertising, rented, determined rent amounts, selected tenants, and leased and

collected rents for the properties owned by him and his various business entities, and by those

of the Herman Trust, without distinction. The Defendant did not distinguish between himself,

the various business entities or the Herman Trust with tenants. Tenants did not differentiate

between the Defendant, his various entities, and the Herman Trust. Rather, the Defendant

handled all advertising for all entities and the Herman Trust; he handled all paper work for all

entities and the Herman Trust; and he handled all tenants of his, the various entities, and the

Herman Trust. According to the Defendant, rents received for properties owned by the

Defendant and his various businesses were deposited into an account in the name of DRL and

rents received for the Herman Trust properties were deposited into a Herman Trust bank

account.

21. It is the understanding and belief of the United States Trustee that an entity

called MPW Trust, LLC was formed on or around May 22, 2006 with David Sharrock as the

original registered agent. It is the understanding and belief of the United States Trustee that

from around June 1, 2006 to approximately August 11, 2010 the Defendant was a member of

MPW Trust, LLC and executed documents as a member of MPW. It is the understanding and

belief of the United States Trustee that around October 15, 2010 the registered agent of MPW

was changed to Elisa Schunatz, a granddaughter of the Defendant. It is the understanding and

belief of the United States Trustee that the initials “MPW” stand for the children of Elisa




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Schunatz, and that MPW Trust was formed to enable Defendant and his granddaughter to

maintain possession and control of properties owned by the granddaughter and her spouse

when they encountered financial difficulties. Elisa Schunatz testified that some of the

properties owned by MPW Trust were subject to mortgages that Defendant had co-signed,

and he did not want their financial difficulties to adversely affect his own creditworthiness.

Prepetition Transfers of Real Estate to the Herman Trust

22. On or about July 8, 2011, David Trust Properties, LLC transferred its interest

in property located at 147 Harvard Avenue, Mansfield, Ohio to the Herman Trust by way of a

quitclaim deed.

23. On or about July 8, 2011, MPW Trust, LLC transferred its interest in property

located at 25-27 State Street, Mansfield, Ohio to Defendant and Doris Sharrock by way of a

quitclaim deed. On the same day, Defendant and Doris Sharrock transferred the property to

the Herman Trust by way of a quitclaim deed.

24. On or about March 22, 2011, Defendant and Doris Sharrock transferred their

joint interest in property located at 3340 Crimson, Road, Mansfield, Ohio to the Herman Trust

by way of a quitclaim deed. Defendant signed the deed on behalf of Doris Sharrock.

25. On or about July 13, 2011, D&D Charities transferred its interest in property

located at 408 Water Street, Caledonia, Marion County, Ohio to the Herman Trust by way of

a quitclaim deed.

26. On or about February 3, 2012, Defendant and Doris Sharrock transferred their

joint interest in property located at 148 Poplar Street, Mansfield, Ohio to the Herman Trust by

way of a general warranty deed. Defendant signed the deed on behalf of Doris Sharrock.




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27. On or about February 3, 2012, Defendant and Doris Sharrock transferred their

joint interest in property located at 501 Lawn Avenue, Galion, Ohio to the Herman Trust by

way of a general warranty deed. Defendant signed the deed on behalf of Doris Sharrock.

28. Defendant testified that his interests in the properties were transferred to the

Herman Trust for an amount equivalent to one half of the county auditor value as of the date

of the transfer, but he has not provided independent documentary evidence substantiating that

testimony.

29. It is the understanding and belief of the United States Trustee that on the

Defendant’s bankruptcy filing date, substantially all of the property owned by the Herman

Trust was unencumbered.

Prepetition Transfer of Real Estate to Residential Fund 118, LLC

30. On or about July 31, 2012 the Defendant individually, jointly with his spouse,

and/or on behalf of various entities which he owned and/or controlled transferred interests in

approximately sixty-four (64) properties to an entity called Residential Fund 118, LLC, which

has an address at 901 Calle Amanecer, Suite 150, San Clemente, California 92673. HUD

statements reflect that the Defendant, his spouse, and various entities which he owned and/or

controlled received a total of $318,157.49 from such transfers.

31. HUD statements show that the Defendant individually transferred the

following properties to Residential Fund, LLC on July 31, 2012:

57 Grand Blvd, Shelby, Ohio

4021 CR 61, Mt. Gilead, Ohio

473 Van Buren, Mansfield, Ohio

1064 S.R. 314, Ontario, Ohio




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2 Diamond St., S., Mansfield, Ohio

3232 Crimson Road, Mansfield, Ohio

32. HUD statements show that Defendant and his spouse Doris Sharrock

transferred their interests in the following properties to Residential Fund 118, LLC on or

about July 31, 2012:

315 Harker Road, Mansfield, Ohio

23/25 Chilton Road, Mansfield, Ohio

203-205 Buckingham Avenue, Mansfield, Ohio

704 Detroit St., S, Kenton, Ohio

321 Greendale Road, Mansfield, Ohio

167 Wood St., Mansfield, Ohio

472 Hammond, Mansfield, Ohio

16983 C.R. 330, Upper Sandusky, Ohio

267 E. Arch, Mansfield, Ohio

197 Buckingham Ave., Mansfield, Ohio

458 Pearl Street, Mansfield, Ohio

293 3rd

Avenue, Mansfield, Ohio

139 Helen Avenue, Mansfield, Ohio

412 Woodland Avenue, Mansfield, Ohio

629 Harding Way E., Mansfield, Ohio

373 Wayne Street, Mansfield, Ohio

652 Bowman, Mansfield, Ohio

154 Blanche W., Mansfield, Ohio




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218 Penn Avenue, Mansfield, Ohio

319 3rd Avenue, Mansfield, Ohio

17 W. Augustine Avenue, Mansfield, Ohio

273 Myers Avenue, Mansfield, Ohio

684 N. State Street, Marion, Ohio


36 Sherman Avenue, Shelby, Ohio


273 S. Adams, Mansfield, Ohio

33. HUD statements show that David Trust Properties, LLC, an entity owned and

controlled by the Defendant, transferred the following properties to Residential Fund 118,

LLC on or about July 31, 2012:

86 Caledonia Road, North, Caledonia, Ohio

353 Wood Street, Mansfield, Ohio

50 Reba Avenue, Mansfield, Ohio

371 Beryl, Mansfield, Ohio

442 Thompson, Marion, Ohio

1209 Woodville Road, Mansfield, Ohio

4605 Bott Road, Bellville, Ohio

380 Emerald Avenue, Mansfield, Ohio

30 Auburn Avenue, Shelby, Ohio

350 Sturges Avenue, Mansfield, Ohio

6220 Olivesburg-Fitchville Road, Greenwich, Ohio




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205 Elk Street, Marion, Ohio

391 Dale Avenue, Mansfield, Ohio

320 Indiana Avenue, Mansfield, Ohio

152 McWilliams Court, Marion, Ohio

723 Bennett, Marion, Ohio

510 Cottage Street, Marion, Ohio

559 Bonair, Mansfield, Ohio

34. HUD statements show that DRL Properties, LLC, an entity owned and

controlled by the Defendant, transferred the following properties to Residential Fund 118,

LLC on or about July 31, 2012:

419 Waterloo Street, Marion, Ohio

828 Hoover Road, Mansfield, Ohio

918 Harr Road Marion, Ohio

512 Kibler St., S. New Washington, Ohio

252 Pierce Street, S., Galion, Ohio

1087 Woodside Drive, Mansfield, Ohio

585 Garfield Place, Mansfield, Ohio

1021 Elm Street, Bucyrus, Ohio

622 Caldwell Avenue, Mansfield, Ohio

720 Burns Street, Mansfield, Ohio

1875 S.R. 39, Lucas, Ohio




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35. HUD statements show that DD Charity, LLC, an entity owned and controlled

by the Defendant, transferred the following properties to Residential Fund 118, LLC on or

about July 31, 2012:

166 Park Avenue W., Mansfield, Ohio

1401 Ashland Road, Mansfield, Ohio

36. The Defendant testified, under oath, that in 2010, he first commenced

discussions and/or negotiations for the bulk sale of some of the properties he and/or his

entities owned. He testified that after one deal for the bulk sale of properties terminated, he

negotiated for the sale of properties with Northeastern Capital Resources. The Defendant

testified that he negotiated with Northeastern Capital Resources for the sale of his properties

and that ultimately the properties transferred to Residential Funds 118 for $600,000. He

stated that the deal closed on July 31, 2012 and that Northeastern then “sold” to Residential

Funds 118, who closed the deal.

37. The Defendant testified, under oath, that from the proceeds derived from the

bulk sale, approximately $300,000 was paid to Sutton Bank and United Bank; $70,000 was

paid to the title company, Heights Title; $70,000-$80,000 was remitted to pay outstanding

taxes; and the Defendant received the net of $105,000 or $115,000. The Defendant testified

that he received two deposits – one in the amount of $81,000 and one in the amount of

$35,000 and that he placed such funds in the DRL bank account or his personal money market

account. He testified that he subsequently used such funds to pay his criminal and bankruptcy

attorneys.




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Prepetition Transfer of Hummer

38. The Defendant testified, under oath, that in June or July, 2012 he transferred

his interest in a Hummer for $16,000. Ohio Bureau of Motor Vehicle records show that the

Defendant transferred this vehicle to Ontario Motors on December 27, 2011. The Defendant

testified that the proceeds from the sale of the Hummer were deposited into the DRL bank

account. Bank accounts statements reflect that the Defendant deposited $16,000 into a joint

individual account, no x6748, on December 27, 2011.

Bankruptcy Petition and Schedules

39.

On October 23, 2012, the Defendant filed a voluntary petition for relief under

chapter 7 of the Bankruptcy Code. Concurrent with the filing of the petition, the Defendant

filed schedules and a Statement of Financial Affairs under penalty of perjury.

40. On or about October 23, 2012, Defendant signed his bankruptcy schedules. In

signing his schedules, Defendant stated “I declare under penalty of perjury that I have read the

foregoing summary and schedules, consisting of 0 sheets, and that they are true and correct to

the best of my knowledge, information, and belief.” Defendant filed or caused to be filed

these schedules with his electronic signature on October 23, 2013.

41. On or about October 23, 2012, Defendant signed his Statement of Financial

Affairs (SOFA). In signing his Statement of Financial Affairs, Defendant declared that he had

read the answers in the Statement of Financial Affairs, and any attachments thereto, and that

they were true and correct.

42. On or about October 30, 2012, Defendant also filed or caused to be filed a

Declaration re: Electronic Filing of Documents and Statement of Social Security (“ ECF

Declaration”). The ECF Declaration was signed on or about October 26, 2012. In signing




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his ECF Declaration, Defendant swore that the information provided in the electronically

filed petition, statements, and schedules, as well as in any other documents that must contain

signatures, was true, correct and complete.

43. On October 29, 2012, the Defendant filed amended schedules which included

an Amended Summary of Schedule; Amended Schedule C – Property Claimed Exempt;

Amended Schedule D – Creditors Holding Secured Claims; Amended Schedule E – Creditors

Holding Unsecured Priority Claims; and a Declaration Concerning Debtor’s Schedules. The

Declaration, signed under penalty of perjury, and signed by the Defendant stated that the

information contained in the documents was true and correct to the best of the Defendant’s

knowledge, information, and belief.

44. The Defendant filed additional amendments on December 13, 2012 which

included an Amended Summary of Schedules; Amended Schedule A along with attached

exhibits Amended Schedule D, and a Declaration Concerning Debtor’s Schedules in which

the Defendant declared under penalty of perjury that the amendments are true and correct to

the best of the Defendant’s knowledge, information and belief.

45. Defendant’s originally filed Schedule A disclosed his ownership interest in 36

real properties with an aggregate value of $3,995,000.

46. The Amended Schedule A filed by the Defendant scheduled seven real

properties with a total value of $563,000 in which the Defendant had an interest along with 30

other properties owned by entities in which the Defendant has an interest. Such entities

include: David Trust Properties, LLC; D.R.L. Properties, LLC; DD Charities LLC; 92 West

3nd Street, LLC; and, 2701 Crider Road, LLC.




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47. In Schedule B, Defendant stated that he owned $18,210 in personal property,

including but not limited to the following:

Type of Property Description and Location of Property Value of

Debtor’sinterest inProperty,withoutdeducting anysecured claimor exemption

1. Cash on hand. $360

2. Checking, savingsor other financial

accounts, certificatesof deposit, or sharesin banks, savingsand loan, thrift, building and loanand homestead associations, or credit unions, brokerage houses, or cooperatives.

Mechanics Savings971 Lexington Avenue

Mansfield, Ohio 44907

Money MarketAccount #6748Balance $200

DRL AccountAccount #5532Balance $550

$750

4. Household goods

and furnishings . . .

Rooms of furniture located at 1624

Estate Court, Mansfield, Ohio 44906

$7,000

5. Books; picturesand other art objects.. . .

Old Bibles located at 1624 Estate Court,Mansfield, Ohio 44906

$1,500

6. Wearing apparel. Men’s clothing located at 1624 EstateCourt, Mansfield, Ohio 44906

$500

7. Furs and jewelry Jewelry located at 1624 Estate Court,Mansfield, Ohio 44906

$800

8. Firearms and sports . . .

38 handguns located at 1624 EstateCourt, Mansfield, Ohio 44906

$450

14. Interest in

partnerships or jointventures. Itemize.

David Trust Properties, LLC

993 Lexington AvenueMansfield, Ohio 44907100% Membership

D&D Charity, LLC993 Lexington AvenueMansfield, Ohio 4490750% Membership

Unliquidated




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D.R.L. Properties, LLC993 Lexington AvenueMansfield, Ohio 4490750% Membership

92 West 2nd

Street, LLC993 Lexington AvenueMansfield, Ohio 4490750% Membership

2701 Crider Road, LLC993 Lexington AvenueMansfield, Ohio 4490750% Membership

15.AccountsReceivables Rent from Rental Properties $1,850

19. Equitable or future interests, lifeestates, and rights or powers exercisablefor the benefit of thedebtor other thanthose listed inSchedule A – RealProperty

None.

20. Contingent and noncontingentinterest in estate of adecedent, death benefit plan, lifeinsurance policy, or trust.

None.

25. Automobiles,trucks, trailers, . . . .

1999 Dodge Durango 4 x 4 located at1624 Estate Court, Mansfield, Ohio44906.

28.Office

equipment,furnishings, and supplies.

Desk, table, 9 chairs, filing cabinets,

copy/fax machines993 Lexington Road Mansfield, Ohio

$2,500




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48. In Schedule D and Amended Schedule D, Defendant lists secured claims

totaling $1,825,343.66. The secured claims consist of a number of mortgages on various

properties in which the Debtor has an interest.

49. In Amended Schedule E , Defendant listed $44,327.80 in unsecured priority

claims consisting of deposits from individuals and taxes and other debts owed to

governmental units.

50. Defendant’s Schedule F lists unsecured claims totaling $4,934,083.96

consisting primarily of unsecured loans from various individuals. It is the understanding and

belief of the United States Trustee that such individuals invested funds with the Defendant in

exchange for notes in which the Defendant promised to repay over time at interest rates as

high as 12% interest.

51. Schedule I discloses that Defendant is self-employed/retired. Defendant stated

in Schedule I that his monthly income consists of $32,687 from real property; $1,245 from

Social Security; and $300 from insurance renewals.

52. Schedule I states the Defendant’s spouse is retired and earns monthly income

from real property in the amount of $15,000 and social security benefits of $520. Schedule I

makes no disclosure as to the Herman Trust Properties, LLC.

Statement of Financial Affairs

53. Defendant’s Statement of Financial Affairs, item 1, disclosed that the

Defendant had 2010 earnings of $100,000 income from business operations and $14,900 from

Social Security. The Defendant reported 2011 earnings of $100,000 from business operations

and $14,940 from Social Security. He did not disclose any income earned by his spouse.




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54. Defendant’s Statement of Financial Affairs, item 2, disclosed that he received

income, other than from employment, in 2011 in the amount of $6,000 from the sale of United

American Insurance Company policies. No other income from the sale of real estate or other

sources was disclosed.

55. In his Statement of Financial Affairs, item 3b, the Defendant answered the

following regarding all payments, where debts are not primarily consumer debts, made within

the 90 days before the bankruptcy filing if the aggregate value is $5,850: First Federal of

Ohio, payment of $7,914.15 on August 28, 2012; Halligan & Lang Co., LPA, $49,000 on

August 15, 2012.

56. In the Defendant’s answer to the Statement of Financial Affairs, question 3c

regarding payments made within one year preceding the commencement of the case to or for

the benefit of creditors who are insiders, the Defendant responded “None.”

57. The Defendant disclosed payments related to debt counseling or bankruptcy in

response to the Statement of Financial Affairs, question 9 that he paid McDonald Hopkins

$25,000 on August 25, 2012 and $10,000 on October 10, 2012. He disclosed he paid BBP

Partners $7,500 on August 25, 2012.

58. In his Statement of Financial Affairs, Item 10a, Defendant answered “None” in

response to the question which requires him to disclose all property, other than property

transferred in the ordinary course of his business or financial affairs, either absolutely or as

security within the two years preceding the commencement of his case.

59. In his Statement of Financial Affairs, Item 14, Defendant answered “None” in

response to the question directing disclosure of all property owned by another person that the

debtor holds or controls.




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341 Meeting of Creditors

60. On December 13, 2012, Defendant appeared for the meeting of creditors

required by 11 U.S.C. § 341. Under oath, Defendant affirmed that the information contained

in his petition, schedules, statements, related documents and all amendments to such

documents were true and correct, after amendments were filed. When asked if there were any

other corrections or additions or errors that the Defendant found, the Defendant replied “no.”

Bankruptcy Administration

61. On November 9, 2012, Mr. DeGirolamo, the chapter 7 trustee, filed a motion

to operate the Defendant’s business. The motion was granted by way of an order entered on

December 21, 2012. Since that time, the chapter 7 trustee has been operating the Defendant’s

real estate business and liquidating estate assets.

62. On December 26, 2012, Mr. DeGirolomo filed Trustee, Anthony J.

Degirolamo’s, Ex Parte, Motion for Substantive Consolidation, or Alternatively, to Pierce the

Corporate Veil (“Motion to Consolidate”), in which he asked this Court to consolidate the

assets of the Defendant’s bankruptcy estate with the assets of his business entities or, in the

alternative, to find the entities alter egos of the Defendant and to deem their assets property of

the Defendant, subject to administration in this bankruptcy proceeding. The Motion to

Consolidate alleged, in part, that the Defendant failed to observe corporate formalities for the

business entities, commingled funds, and treated all properties as if they were owned by him

individually.




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63. The Defendant did not object to or otherwise challenge any of the allegations

in the Motion to Consolidate. Rather, on or about December 26, 2012 he entered into the

Agreed Interim Order Granting Ex Parte Motion of Trustee, Anthony J. DeGirolamo, for

Substantive Consolidation (“Interim Order”) in which the Defendant and the chapter 7 trustee

deemed the assets of the business entities, D.D. Charity, LLC; David Trust LLC; DRL

Properties Trust LLC; and 92 W. 2nd Street LLC to be assets of the bankruptcy estate “subject

to the rights of any joint owners of those assets and the rights of non-debtor members of the

Related Companies (if any) to prove their respective interests in the properties, companies, or

proceeds from the sales of the properties.” The Interim Order further clarified that the

properties listed on Schedule “A” attached to the Interim Order would be deemed property of

the estate subject to administration by the chapter 7 trustee.

64. The Interim Order was followed by a Judgment Entry Granting Motion of

Trustee, Anthony J. DeGirolamo, for Substantive Consolidation (“Judgment Entry”). The

Judgment Entry, entered on March 5, 2013, is substantially identical to the Interim Order.

65. The United States Trustee secured an order directing the Defendant to appear

for his examination pursuant to Fed. R. Bankr. P. 2004 and produce requested documents.

Over the course of two days, on March 21, 2013 and April 16, 2013 the United States Trustee

and chapter 7 trustee examined the Defendant.

66. The Defendant also produced numerous documents in response to document

requests by the United States Trustee and chapter 7 trustee.

67. Bank statements from a Mechanics Savings individual joint money market

account in the name of the Defendant and his spouse ending in account number x6748 reflect,

in part, the following deposits from December 27, 2011 through October 25, 2012.




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Date Description of Deposits Amount

12/27/2011 Deposit Southside $16,000



08/08/2012 FIA CSNA Direct Dep 120807 CIE $5,000

08/15/2012 Wire from Heights Title IOTA Heig $86,218.06


08/28/12 Wire from Heights Title IOTA Heig $32,000


Total $228,718.06

68. Bank statements from a Mechanics Savings individual joint money market

account in the name of the Defendant and his spouse ending in account number x6748 reflect,

in part, the following withdraws from December 27, 2011 through October 25, 2012.

Date Description of Withdrawal Amount

01/13/2012 Withdrawal Southside $8,000




01/30/2012 Check Number 1035 Ref #914806731 $25,000





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02/24/2012 Check Number 1036 Ref #97129128 $25,000


08/15/2012 Check Number 1037 Ref #700050203 $26,000

08/17/2012 Check Number 1038 Ref #910405373 $49,000

08/23/2012 Check Number 1039 Ref #911414024 $15,200




09/10/2012 Check Number 1040 Ref #912321379 $25,000

10/11/2012 Check Number 1041 Ref #913438034 $10,000

Total $234,200

Books, Records and Postpetition Conduct of the Defendant

69. The Defendant has provided significant amounts of financial records

requested by the United States Trustee and chapter 7 trustee. However, the documents

provided do not fully account for the Defendant’s financial condition and business

transactions.

70. Specifically, the documentation provided does not fully account for the private

investment funds secured by the Defendant and the repayments to such investors.

71. The documentation does not fully account for the transfer of properties to the

Herman Trust LLC during the two year prepetition period.




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72. The documentation does not fully account for the dissipation of over $200,000

deposited into the Defendant’s joint bank account from December 27, 2011 until his

bankruptcy filing date.

73. As of the date of this Complaint, the Defendant continues to provide material,

when requested, however, documents and records are insufficient to ascertain the Defendant’s

financial condition or business transactions.

74. As of the date of the filing of this Complaint, the Defendant has failed to

explain satisfactorily his transfer of assets during the two year prepetition period of time and

he has failed to fully account for funds received as consideration for the transfer of such

assets.

75. It is the understanding and belief of the United States Trustee that postpetition

the Defendant has sent several e-mails to the chapter 7 trustee regarding the amount of equity

in properties owned by his wife and regarding property owned by the Herman Trust that was

sold postpetition.

COUNT I

Violation of 11 U.S.C. § 727(a)(4)(A)(False Oath – Schedule B Interest in Trust Agreement)

76. The allegations contained in paragraphs 1 through 75 are hereby incorporated

by reference with the same force and effect as if set forth in full herein.

77. Defendant made a false oath and statement under penalty of perjury as to

material matters, knowingly and fraudulently, in and in connection with his bankruptcy case

when he stated that his bankruptcy schedules were correct.




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78. Bankruptcy Code Section 727(a)(4)(A) provides that the Court shall deny the

debtor a discharge if it is found that the debtor knowingly and fraudulently made a false oath

or account in or in connection with the case made a false.

79. The Defendant signed his bankruptcy petition, schedules, and all amendments

to such schedules under penalty of perjury.

80. The Defendant testified at his 341 meeting of creditors on December 13, 2012,

under oath, that his bankruptcy schedules and statements as amended were accurate and

complete and that nothing was omitted.

81.

The Defendant failed to disclose on Schedule B in response to Item 20,

requiring disclosure of “contingent and noncontingent interests in estate of a decedent, death

benefit plan, life insurance policy, or trust” that he is a beneficiary as well as a successor co-

trustee of the trust agreement executed on February 26, 2004 by his wife Doris Sharrock,

grantor, along with Doris Sharrock, trustee, and Rhonda J. McElroy and the Defendant, as

successor co-trustees.

82. On Schedule B, Defendant also stated “None” as a response to Item 35, which

requires him to disclose other personal property of any kind not already listed and to itemize

that property. Defendant failed to disclose that he is a beneficiary of his wife’s trust as well as

a successor co-trustee in response to Item 35.

83. The Defendant made a false oath and statement, under penalty of perjury, as to


when he stated “none” as a response to Item 20 and 35 of Schedule B. The Defendant’s

statement that he had no such property was made at least recklessly or with gross disregard

for the truth.




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84. As a result, Defendant’s discharge should be denied pursuant to 11 U.S.C. §

727(a)(4)(A).

COUNT II

Violation of 11 U.S.C. Section 727 (a)(4)(A)(False Oath – Statement of Financial Affairs - #1 and #2 Income)




debtor a discharge if it is found that the debtor knowingly and fraudulently in or in connection

with the case made a false oath or account.

87. On or about October 23, 2012, the Defendant signed his bankruptcy Statement

of Financial Affairs. In signing the Statement of Financial Affairs, he declared under penalty

of perjury that he read the answers in the Statement of Financial Affairs and that they were

true and correct to the best of his knowledge.

88. The Defendant testified, under oath, at his 341 meeting of creditors on

December 13, 2012, that his Statement of Financial Affairs was accurate and complete and

that no further corrections needed to be made and that he had not discovered any further

errors.

89. The Statement of Financial Affairs, Item #1 requires the disclosure of gross

income the debtor received from employment, trade, or profession, or from operation of the

debtor’s business from the beginning of the calendar year to the bankruptcy filing date and

during the two calendar years prior to filing the bankruptcy petition.




25

90. The Statement of Financial Affairs, Item #2 requires the disclosure of all other

income received by the debtor other than from employment, trade, profession or operation of

the debtor’s business during the two years before the filing of the bankruptcy petition.

91. On his Statement of Financial Affairs, Item #1, the Defendant disclosed

income from the “Operation of Business” during the years 2010 and 2011 and Social Security

received during 2010 and 2011. The Defendant failed to disclose any income from any

source whatsoever from January 1, 2012 until the bankruptcy petition filing date of October

23, 2012.

92.

On his Statement of Financial Affairs, Item #2, the Defendant disclosed

income received of $6,000 from United American Insurance Company policies sold in 2011.

The Defendant failed to disclose any other source of income derived in the year 2012 from

January 1, 2012 until the bankruptcy petition filing date of October 23, 2012.

93. The Defendant, in fact, omitted disclosure in response to items #1 and #2 of all

income received during the calendar year of 2012 from January 1, 2012 to the bankruptcy

filing date of October 23, 2012.

94. The Defendant failed to disclose income received from the sale of a Hummer

for $16,000 on or about December 27, 2011 in item #2 of the Statement of Financial Affairs.

95. The Defendant failed to disclose on item #1 or #2 of the Statement of Financial

Affairs the gross income received from the sale of approximately 64 properties to Residential

Fund LLC, 118 on or about July 31, 2012, in an amount exceeding $600,000.

96. The Defendant failed to disclose the gross income received on item #1 or item

#2 of the Statement of Financial Affairs from the transfer of real estate during the two year

prepetition period which he owned individually, through entities he wholly owned or




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controlled, or which he owned jointly with his spouse, to the Herman Properties Trust, LLC,

including but not limited to properties located at: 147 Harvard Avenue, Mansfield, Ohio; 25-

27 State Street, Mansfield, Ohio; 3340 Crimson Road, Mansfield, Ohio; 408 Water Street,

Caledonia, Marion County, Ohio; 148 Poplar Street, Mansfield, Ohio; and 501 Lawn Avenue,

Galion, Ohio.

97. The United States Trustee alleges that the Defendant knowingly and

fraudulently made a false oath or account on his Statement of Financial Affairs, items #1 and

#2, by failing to disclose his receipt of income from the sale of a Hummer, the bulk sale of

approximately 64 properties to Residential Fund LLC 118 and the transfer of properties he

owned jointly with his wife or individually to the Herman Trust Properties, LLC during the

two years prior to the filing of his bankruptcy petition.

98. The United States Trustee alleges that pursuant to 11 U.S.C. Section 727(a)(4),

the Court shall not grant the Defendant a chapter 7 discharge.

COUNT III

Violation of 11 U.S.C. Section 727(a)(4)(A)(False Oath – Statement of Financial Affairs - #10a Other Transfers)



100. Bankruptcy Code Section 727 (a)(4)(A) provides that the Court shall deny the








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errors.

103. The Statement of Financial Affairs, item #10a requires the disclosure of other

transfers during the two years immediately before the commencement of the bankruptcy case

including transfers of “all other property, other than property transferred in the ordinary

course of the business of financial affairs of the debtor,….” The Defendant marked the box

“none” in response to this question.


fraudulently made a false oath on his Statement of Financial Affairs, response to #10 by

failing to disclose his transfers of property during the two year prepetition period including

his transfer of a Hummer; his transfer of approximately 64 properties to Residential Fund

LLC 118, and his transfer of certain properties he owned jointly with his wife or individually

to the Herman Trust Properties, LLC.

105. The United States Trustee alleges that pursuant to 11 U.S.C. Section

727(a)(4)(A), the Court shall not grant the Defendant a chapter 7 discharge.

COUNT IV

Violation of 11 U.S.C. § 727(a)(4)(A)(False Oath – Statement of Financial Affairs #14 Property Held for Another Person)

106. The allegations contained in paragraphs 1 thorough 75 are hereby incorporated





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108. On or about October 23, 2012, the Defendant signed his signed his bankruptcy

Statement of Financial Affairs. In signing the Statement of Financial Affairs, he declared

under penalty of perjury that he read the answers in the Statement of Financial Affairs and

that they were true and correct to the best of his knowledge.

109. The Defendant testified, under penalty of perjury at his 341 meeting of

creditors on December 13, 2012 that his Statement of Financial Affairs was accurate and

complete. He testified that he had no further corrections to make and no further errors were

found.

110. The Statement of Financial Affairs, Item 14, Property held for another person,

requires the disclosure of “all property owned by another person that the debtor holds or

controls.” The Defendant responded “none” to this question.

111. In fact, the Defendant was in control of the Herman Properties Trust LLC

and/or in control of the assets that the Herman Properties Trust LLC owns.


Defendant managed real estate owned by the Herman Properties Trust LLC, leased properties

owned by the Herman Properties Trust LLC, collected rents, deposited rents, and handled

most if not all aspects of the Herman Properties Trust LLC business.


fraudulently made a false oath in connection with the Statement of Financial Affairs, item 14

when he responded “none” regarding the disclosure of “all property owned by another person




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that the debtor holds or controls.” The Defendant’s omission regarding his control of the

Herman Properties Trust, LLC was made at least recklessly or with gross disregard for the

truth.


727(a)(4)(A).

COUNT V

Violation of Section 727(a)(2)(Concealment of Assets –Schedule B interest in Trust Agreement)

115.

The allegations contained in paragraphs 1 through 75 are hereby incorporated


116. Defendant concealed his interest as a beneficiary and successor co-trustee of

his wife’s Trust Agreement with the intent to hinder, delay, or defraud a creditor or an officer

of the estate.

117. Bankruptcy Code Section 727(a)(2) provides that the Court shall deny the

debtor a discharge it is found that the debtor, “with the intent to hinder, delay, or defraud a

creditor or an officer of the estate… concealed property of the debtor . . . .”

118. The Defendant signed his bankruptcy petition, schedules and all amendments

to such schedules under penalty of perjury.

119. The Defendant testified at his 341 meeting of creditors on December 13, 2012,

under oath, that his bankruptcy schedules and statements as amended were accurate and

complete and that nothing was omitted.

120. The Defendant failed to disclose on Schedule B in response to Item 20,

requiring disclosure of “contingent and noncontingent interests in estate of a decedent, death




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benefit plan, life insurance policy, or trust” that he is a beneficiary as well as a successor co-

trustee of the trust agreement executed on February 26, 2004 by his wife Doris Sharrock,

grantor, along with Doris Sharrock, trustee; and Rhonda J. McElroy and the Defendant, as

successor co-trustees.

121. On Schedule B, Defendant also stated “None” as a response to Item 35, which

requires him to disclose other personal property of any kind not already listed and to itemize

that property. Defendant failed to disclose that he is a beneficiary of his wife’s trust as well as

a successor co-trustee in response to Item 35.

122.

The United States Trustee alleges that the Defendant with the intent to hinder,

delay, or defraud a creditor or an officer of the estate concealed his beneficiary interest in the

Trust Agreement created by his wife in which he is a beneficiary and successor co-trustee

when he failed to disclose such interest on Schedule B.


727(a)(2).

COUNT VI

Violation of 11 U.S.C. Section 727 (a)(2)(A)(Concealment – Statement of Financial Affairs - #1 and #2 Income)



125. Bankruptcy Code Section 727(a)(2)(A) provides that Court shall deny the

debtor a discharge if it is found that the debtor with the intent to hinder, delay or defraud a

creditor or an officer of the estate transferred or concealed property of the debtor within one

year before the commencement of the bankruptcy case or concealed property of the estate

after the bankruptcy filing date.




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errors.

128.

The Statement of Financial Affairs, Item # 1 requires the disclosure of gross

income the debtor received from employment, trade, or profession, or from operation of the

debtor’s business from the beginning of the calendar year to the bankruptcy filing date and

during the two calendar years prior to filing the bankruptcy petition.

129. The Statement of Financial Affairs, Item #2 requires the disclosure of all other

income received by the debtor other than from employment, trade, profession or operating of

the debtor’s business during the two years before the filing of the bankruptcy petition.


income from the “Operation of Business” during the years 2010 and 2011 and Social Security

received during 2010 and 2011. The Defendant failed to disclose any income from any

source whatsoever from January 1, 2012 until the bankruptcy petition filing date of October

23, 2012.


income received of $6,000 from United American Insurance Company policies sold in 2011.




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The Defendant failed to disclose any other source of income derived in the year 2012 from

January 1, 2012 until the bankruptcy petition filing date of October 23, 2012.

132. The Defendant, in fact, in response to items #1 and #2 requiring disclosure of

all income received during the calendar year of 2012 from January 1, 2012 to the bankruptcy

filing date of October 23, 2012 concealed income received from the sale of assets in which he

had an interest during the two years prior to filing his bankruptcy petition.

133. The Defendant failed to disclose income received from the sale of a Hummer

for $16,000 on or about December 27, 2011 in item #2 of the Statement of Financial Affairs.

134.

The Defendant failed to disclose on item #1 or #2 of the Statement of Financial

Affairs gross income received from the sale of approximately 64 properties to Residential

Fund LLC, 118 on or about July 31, 2012 exceeding $600,000.

135. The Defendant failed to disclose income received on item #1 or item #2 of the

Statement of Financial Affairs from the transfer of real estate during the two year prepetition

period which he owned individually, through entities he wholly owned or controlled, or which

he owned jointly with his spouse, to the Herman Properties Trust, LLC, including but not

limited to properties located at: 147 Harvard Avenue, Mansfield, Ohio; 25-27 State Street,

Mansfield, Ohio; 3340 Crimson Road, Mansfield, Ohio; 408 Water Street, Caledonia, Marion

County, Ohio; 148 Poplar Street, Mansfield, Ohio; and 501 Lawn Avenue, Galion, Ohio.

136. The United States Trustee alleges that the Defendant with the intent to hinder,

delay, or defraud a creditor or officer of the estate concealed income derived from the sale of

assets in which he had an interest during the one year prepetition period, by omitting on his

Statement of Financial Affairs, items #1 and #2, his receipt of income from the sale of a

Hummer, the bulk sale of approximately 64 properties to Residential Fund LLC 118 and the




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transfer of properties he owned jointly with his wife or individually to the Herman Trust

Properties, LLC during the two years prior to the filing of his bankruptcy petition. As a result

of such conduct, the Defendant should be denied a discharge under 11 U.S.C. Section

727(a)(2)(A).

COUNT VII

Violation of 11 U.S.C. Section 727(a)(2)(A)(Transfer and Concealment of Assets – Statement of Financial Affairs - #10a Other

Transfers)




debtor a discharge if the debtor, with intent to hinder, delay, or defraud a creditor or an officer

of the estate charged with custody of property under the estate transferred or concealed

property of the estate within one year before the date of the filing of the petition.








errors.

141. The Statement of Financial Affairs, item #10a requires the disclosure of other

transfers during the two year immediately before the commencement of the bankruptcy case




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including transfers of “all other property, other than property transferred in the ordinary

course of the business of financial affairs of the debtor,….” The Defendant marked the box

“none” in response to this question.


delay, or defraud a creditor or an officer of the estate transferred property of the debtor, within

one year before he filed bankruptcy when he transferred his interest in a Hummer, sold

through a bulk sale interests in approximately 64 parcels of property in which he had an

interest, and transferred his interest in six parcels of property that he owned jointly with his

spouse, to the Herman Properties Trust, LLC, including but not limited to properties located

at: 147 Harvard Avenue, Mansfield, Ohio; 25-27 State Street, Mansfield, Ohio; 3340

Crimson Road, Mansfield, Ohio; 408 Water Street, Caledonia, Marion County, Ohio; 148

Poplar Street, Mansfield, Ohio; and 501 Lawn Avenue, Galion, Ohio.


delay or defraud a creditor or an officer of the estate concealed property of the debtor within

the one year before the bankruptcy filing date when he failed to disclose on his Statement of

Financial Affairs, response to #10 consideration received for his transfers of property during

the two year prepetition period including his transfer of a Hummer; his transfer of

approximately 64 properties to Residential Fund LLC 118 and his transfer of six certain

properties he owned individually, through an entity he controlled, or jointly with his wife, to

the Herman Trust Properties, LLC.

144. The United States Trustee alleges that pursuant to 11 U.S.C. Section

727(a)(2)(A), the Court shall not grant the Defendant a chapter 7 discharge.




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COUNT VIII

Violation of 11 U.S.C. § 727(a)(2)(A)

(Concealment – Statement of Financial Affairs #14 Property Held for AnotherPerson)

145. The allegations contained in paragraphs 1 thorough 75 are hereby incorporated



debtor a discharge if it is finds that the debtor with the intent to hinder, delay, or defraud a

creditor or an officer of the estate charged with custody concealed property of the debtor,

within one year before the commencement of the bankruptcy case.





148. The Defendant testified, under penalty of perjury at his 341 meeting of

creditors on December 13, 2012 that his Statement of Financial Affairs were accurate and

complete. He testified that he had no further corrections to make and no further errors were

found.

149. The Statement of Financial Affairs, Item 14, Property held for another person,

requires the disclosure of “all property owned by another person that the debtor holds or

controls.” The Defendant responded “none” to this question.

150. In fact, the Defendant was in control of the Herman Properties Trust LLC

and/or in control of the assets that the Herman Properties Trust LLC owns.




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Defendant managed real estate owned by the Herman Properties Trust LLC, leased properties

owned by the Herman Properties Trust LLC, determined rent amounts, collected rents,

deposited rents, and handled most, if not all, aspects of the Herman Properties Trust LLC

business.


delay, or defraud a creditor or officer of the estate concealed his interest in property of the

debtor, within the one year prepetition period when he responded “none” regarding the

disclosure of “all property owned by another person that the debtor holds or controls.”

153. The United States Trustee alleges that the Defendant’s control over the

Herman Properties Trust amounted to a de facto interest in the Herman Properties Trust, LLC

and his omission regarding his control of the Herman Properties Trust, LLC constitutes a

concealment made with the intent to hinder, delay or defraud a creditor of the estate at least

recklessly or with gross disregard for the truth of property of the estate within the one year

prepetition period.


727(a)(2)(A).

COUNT IX

Violation of 11 U.S.C. § 727(a)(4)(A) (False Oath – Declaration Regarding BankruptcySchedules)


by reference with the same force and effect as if set forth in full herein. On or about

September 24, 2012, the Defendant signed his bankruptcy schedules. In signing his

schedules, Defendant stated “I declare under penalty of perjury that I have read the foregoing




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summary and schedules, consisting of 21 sheets, and that they are true and correct to the best

of my knowledge, information, and belief.” Defendant filed or caused to be filed these

schedules with his electronic signature on April 20, 2012.

156. In fact, Defendant had made false statements in Schedule B when he failed to

disclose his beneficiary interest in the Trust Agreement executed on February 26, 2004.



when he declared that his bankruptcy schedules and summary were true and correct to the best

of his knowledge, information, and belief. Defendant’s statements were made at least

recklessly or with gross disregard for the truth.


727(a)(4)(A).

COUNT X

Violation of 11 U.S.C. § 727(a)(4)(A) (False Oath – Declaration Under Penalty of Perjury – Statement of Financial Affairs


by reference with the same force and effect as if set forth in full herein. At the conclusion of

his Statement of Financial Affairs, Defendant signed it under penalty of perjury. In signing

the Statement of Financial Affairs, Defendant declared that he had read the answers contained

in the Statement of Financial Affairs and any attachments thereto and that they were true and

correct.



when declared that Statement of Financial Affairs was true and correct, because Defendant




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had issued false oaths as to one or more material facts in items 3c, 6b, and 10a of his

Statement of Financial Affairs. Defendant’s declaration that his Statement of Financial

Affairs was true and correct was made at least recklessly or with gross disregard for the truth.


727 (a)(4)(A).

COUNT XI

Violation of 11 U.S.C. § 727(a)(4)(A) (False Oath: ECF Declaration)


by reference with the same force and effect as if set forth in full herein. In his ECF

Declaration, Defendant declared under penalty of perjury that the information provided in his

electronically filed petition, statements, and schedules, as well as any other document

containing an original signature, was true, correct, and complete.

163. In fact, Defendant had uttered false statements in Schedule B, and in items 1,

10a, and 14 of his Statement of Financial Affairs. Defendant failed to disclose income

derived from the sale of assets, failed to disclose his transfer of assets during the two year

prepetition period, and failed to disclose that he was in control of the Herman Properties Trust

LLC or that he was the de facto owner of such entity on his Statement of Financial Affairs.

164. Defendant made the false oath and statement in his ECF Declaration under

penalty of perjury as to material matters, knowingly and fraudulently, in and in connection

with his bankruptcy case when he declared that his bankruptcy Statement of Financial Affairs

was true and correct to the best of his knowledge, information, and belief.” Defendant’s

statements were made at least recklessly or with gross disregard for the truth.




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727(a)(4)(A).

COUNT XII

Violation of 11 U.S.C. § 727(a)(3) (Concealed or Failed to Keep Records)


by reference with the same force and effect as if set forth in full herein. On October 23, 2012,

Defendant filed a voluntary petition for relief under chapter 7 of the Bankruptcy Code.

167. On February 11, 2013, the Defendant was ordered to appear for his

examination pursuant to Fed. R. Bankr. P. 2004 and produce documents listed on Exhibit A

attached to the Motion for Authority to Conduct 2004 Examination and Request for

Production of Documents, including but not limited to tax returns filed by the Herman trust

from 2008 to 2012; copies of monthly bank account statements for any account for which

debtor had signing authority or into which he deposited and withdrew funds from January 1,

201 through December 31, 2012; copies of any solicitation letters sent to individual creditors

listed on Schedule F , copies of each and every promissory note for each individual unsecured

letter listed on Schedule F along with accounting for proceeds of amount borrowed, ledger of

interest and principal payment; post-note correspondence, copy of any financial statement

given to any bank or individual investor during 2010 or 2011; among other documents. The

chapter 7 trustee made an independent request for documents.

168. Since the initial request for documents by the United States Trustee and

Chapter 7 trustee, the Defendant has turned over significant amounts of documents.

However, such documents are insufficient to ascertain the Defendant’s financial condition or

business transactions. In fact, the United States Trustee avers that the Defendant failed to




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keep or preserve recorded information, including books, documents, records, and papers, from

which the debtor’s financial condition or business transactions might be ascertained and such

act or failure to act was not justified under the circumstances of the case.

169. The United States Trustee avers that the documents provided fail to

substantiate the Defendant’s financial condition on the bankruptcy filing date, fail to

substantiate the source of the Defendant’s deposits in excess of $228,000 from the end of

December, 2011 to his bankruptcy filing date and withdrawals of more than $234,000 from

January, 2012 to his bankruptcy filing date; and fail to substantiate his use of private investor

funds, payments to private investors and/or how he determined the amounts and dates of

payments to private investors.

170. Defendant’s failure or failure to act is not justified under the circumstances of

his case.


727(a)(3).




WHEREFORE, the United States Trustee asks this Court to deny Defendant’s

discharge under 11 U.S.C. §§ 727(a)(2), (a)(3), (a)(4), and (c) and for such further relief as

this Court deems just and proper.

Respectfully submitted,

Daniel M. McDermottUnited States Trustee Region 9

/s/ Amy L. Good

Amy L. Good (0055572)U.S. Department of JusticeOffice of the United States Trustee

H.M. Metzenbaum U.S. Courthouse201 E. Superior Ave., Suite 441Cleveland, OH 44114-1240(216) 522-7800, ext. 236(216) 522-7193 [email protected]

Did Sharrock conceal assets?

Documents

Transcript of Did Sharrock conceal assets?