IN the UNITED STATES BANKRUPTCY COURT for the NORTHERN DISTRICT of IOWA in RE: ) ) Chapter 7 ARGRIPROCESSORS, INC., )
Case 10-09108 Doc 112 Filed 10/21/14 Entered 10/21/14 17:34:42 Desc Main Document Page 1 of 59 IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF IOWA IN RE: ) ) Chapter 7 ARGRIPROCESSORS, INC., ) ) Bankruptcy No. 08-02751 Debtor. ) ) JOSEPH E. SARACHECK, ) in his capacity as ) CHAPTER 7 TRUSTEE, ) ) Plaintiff, ) Adversary No. 10-09108 ) v. ) ) CROWN HEIGHTS HOUSE OF ) GLATT, INC., ) ) Defendant. ) ) MEMORANDUM AND ORDER Chapter 7 Trustee, Joseph Sarachek, brought this case against Defendant, Crown Heights House of Glatt, Inc., alleging that Defendant received fraudulent conveyances or preferential transfers from Debtor totaling $5,364,090.33. The matter came before the Court for trial on November 13–14, 2013. M. David Graubard appeared for Defendant. Dan Childers and Desirée Kilburg appeared for the Trustee. The parties agreed to await a transcript before briefing. The matter Case 10-09108 Doc 112 Filed 10/21/14 Entered 10/21/14 17:34:42 Desc Main Document Page 2 of 59 was submitted for decision on simultaneous briefs February 26, 2014. This is a core proceeding under 28 U.S.C. § 157(b)(2)(F) and (H). STATEMENT OF THE CASE Trustee seeks to recover payments made from Debtor to Crown Heights House of Glatt (“Defendant”) totaling $5,364,090.33. Trustee seeks to recover all these payments as fraudulent transfers under 11 U.S.C. § 548 or $4,427,090.33 of the payments as preferential transfers to an insider under 11 U.S.C. § 547(b). Trustee argues all payments Defendant received were constructively fraudulent transfers because the payments were not made for reasonably equivalent value.
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