A lumber yard sold materials to its customer without a credit application or personal guaranty. The recession hit and in 2012, the lumber yard turns the case over to our office.
We immediately started looking to the debtor’s assets. We located a suit between for debtor’s principal which unlocked a treasure chest of information. We brought suit against the debtor corporation as well as its individual owners alleging that the individual owner was an “alter egos” of the debtor corporation. We had sought and obtained a real estate attachment against the individual defendant and arguably that held by a bogus nominee realty trust.
The debtor corporation, being defunct, defaulted. Once judgment entered against the debtor corporation, we proceeded to take numerous depositions seeking the debtor corporation’s bank records and credit cards. Although a lengthy and laborious process, we followed the money trail which further strengthened our piercing the corporate veil claim. When a corporate veil is successfully pierced, individual owners of the corporation can be found liable for the corporation’s debt.
After a three day suit, judgment entered against the individual defendant as alter ego to his corporation. While the case was progressing, the individual defendant transferred her property to her boyfriend in a purported sale financed by a lender.
Following our demand letters to the lender for payment of our attachment, the lender filed a Complaint for a declaratory judgment. We counterclaimed also seeking a determination that our attachment included property standing in the name of the individual defendant’s bogus trust. We also sought to undo the allegedly fraudulent transfer of the individual defendant’s property to her boyfriend.
In the midst of our extensive discovery, the lender agreed to pay my client over $125,000.00. Found money.
As a result of our relentless efforts spanning over half a decade, we effectively turned a sow’s ear into a gold purse for our client. Unlike others who seemingly effortlessly just pick off the low hanging fruit and then walk away. We fight for you to recover every dollar possible.
If your company could benefit from an effective, relentless and experienced Massachusetts commercial debt collection attorney, call Alan M. Cohen at 508-620-6900 or email email@example.com.