Tag: Informal Trust

Bankr. E.D.N.C.: In re Somerset Properties SPE- Trust or Debtor-Creditor Relationship

Summary:

MGHC filed a Proof of Claim, which was allowed as late-filed for $6 million, arising from lawsuit over a failed land development in New Jersey, where MGHC had provided funding to Mill Ridge Farms, whose principal, Kevin Wilk is is the managing member of Somerset Properties. MGHC had sued Mill Ridge Farms, Kevin Wilks and Somerset Properties alleging a civil conspiracy to convert property of and defraud MGHC, using funds intended for a New Jersey development project to finance the purchase of property in North Carolina for Wilk. Somerset Properties, however, asserted that liability should not be imputed to it merely because it has common ownership with other corporate defendants in the New Jersey Litigation, and also by denying that it used any of MGHC’s advances.… Read More

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