The examination of Debtor, Charles Randolph Lance will be held on July 16, 2012 at 9:30 a.m., at the law offices of Stovash, Case & Tingley, P.A., 220 N.Rosalind Avenue, Orlando, Florida 32801.
UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION Case 6:11-bk-19272-ABB Doc 30 Filed 04/20/12
In re: CHARLES RANDOLPH LANCE a/k/a RANDY LANCE, Debtor. Case No: 6:11-bk-19272-ABB Chapter 7
32. Debtor testified at his 341 Meeting of Creditors that he works for American Truck Leasing, LLC, a company owned by his father, but that he doesn’t take an income from it. Such testimony conflicts with the information in Debtor’s schedules and does not provide Fifth Third or this Court with information as to the source of Debtor’s monthly income in the amount of $19,750.00, or the actual ownership of American Truck Leasing, LLC.
33. Debtor also testified that he was receiving a paycheck from American Equipment Leasing and Financing until late April 2011, which also contradicts the information in Ms. Lance’s schedules.
34. On or about June 15, 2011, Debtor participated in the creation of a new business named Easy Semi Truck Leasing America, LLC, a Florida limited liability company, and is identified as the “manager” of the companywith the Florida Department of State, Division of Corporations, which is believed to provide the same services to the same customers as Exodus provided. A true and correct copy of a printout from the website is attached hereto as Exhibit “H.”
35. However, Debtor failed to list Easy Semi Truck Leasing America, LLC, on his bankruptcy schedules as a business in which he has had an interest in the last 6 years, and similarly has failed to indicate any sources of income from this business.
36. Further, Debtor testified at the initial 341 Meeting of Creditors on February 3, 2012, that he did not hold any ownership interest in Easy Semi Truck Leasing America, LLC, and that he did not work for Easy Semi Truck Leasing America, LLC, which is a direct contradiction to the information listed on the Florida Department of State, Division of Corporations Website.
37. Additionally, Debtor testified at the 341 Meeting of Creditors that he was a director of a company called Union Equitywhich is believed to provide the same services to the same customers as Exodus provided. However, Debtor failed to list Union Equity, on his bankruptcy schedules as a business in which he has had an interest in the last 6 years, and similarly has failed to indicate any sources of income from this business.
38. Debtor’s Schedule I also indicates that Debtor has no income from operation of a business or profession or farm, but on Schedule J indicates that Debtor has expenses of $300.00/month from the operation of a business or profession or farm. 39. Debtor’s Schedule I further indicates that neither Debtor nor Ms. Lance has income from real property, but Schedule J indicates mortgage payments of $10,700.00/month and rental mortgages of $9,800.00/month.
39. Debtor’s Schedule I further indicates that neither Debtor nor Ms. Lance has income from real property, but Schedule J indicates mortgage payments of $10,700.00/month and rental mortgages of $9,800.00/month.
40. Debtor testified at the 341 Meeting of Creditors that Ms. Lance receives $4,300.00/month from renal property, which should have been reflected on Debtor’s schedules as income, which would increase Debtor’s net monthly income such that payments could be made to creditors.
41. Based on Debtor’s testimony at the 341 Meeting of Creditors, counsel for Fifth Third believes that Debtor had/has an interest in companies, including, but not limited to Exodus, AEL, AELF, CCF and TAF, which obtained funds from Fifth Third, that Debtor improperly utilized those funds, and otherwise failed to disclose information regarding his financial status and his interest in several businesses at the time of the Forbearance Agreement and Guaranty, and is concealing his current financial status.
42. Counsel for Fifth Third believes Union Equity and/or Easy Semi Truck Leasing America, LLC may have obtained some of the business assets of Exodus and AEL, including but not limited to motor vehicles set forth and described on Exhibit “I” attached hereto.
43. After several attempts by Fifth Third, since the entry of the Final Judgment, to discover the whereabouts of the motor vehicles, Debtor has failed or refused on behalf of Exodus and AEL to disclose the whereabouts of the motor vehicleswith the intent to defraud Fifth Third.
44. Counsel for Fifth Third believes Debtor intentionally and fraudulently transferred or disposed of business assets and embezzled the proceeds from the sale of the business assets, for which Fifth Third is entitled to receive, without disclosure to Fifth Third for the benefit of himself or for use by Union Equity and/or Easy Semi Truck Leasing America, LLC.
45. It is clear from the Schedules and the timing of the Petition that Debtor’s Petition was filed solely to prevent Fifth Third from collection on its Final Judgment, and to conceal or transfer property with the intent to defraud his creditors, as well as to frustrate the right of Fifth Third to enforce its Final Judgment.
46. Fifth Third’s counsel requests that this Court grant a Rule 2004 Examination of the Debtor to determine whether Debtor’s actions are sufficient to prevent his discharge under the United States Bankruptcy Code.
47. Alternatively, Fifth Third’s counsel request that this Court grant a Rule 2004 Examination of the Debtor to determine whether the Debtor concealed, omitted, or misrepresented assets and/or sources of income, and/or only had an intention to avoid post-judgment collection and litigation.
48. An examination of the Debtor is necessary in order to enable Fifth Third’s counsel to confirm whether Debtor improperly obtained the funds, to confirm the disposition of Debtor’s assets and the assets and/or sale proceeds of the collateral for which Fifth Third Bank is entitled as outlined in the Loan Documents, and whether other improper actions have been taken by Debtor.
49. In order to have the examination proceed efficiently, it is necessary that the Debtor furnish at least five (5) days before the examination the documents described in Exhibit “1” attached hereto, pursuant to Bankruptcy Rule 2004.
50. Fifth Third’s counsel proposes to conduct the examination at the law offices of Stovash, Case & Tingley, P.A., The VUE at Lake Eola, 220 N. Rosalind Avenue, Orlando, Florida 32801, or some other mutually agreeable location, at a time mutually agreed upon by the parties, within thirty (30) days of the entry of an Order granting this Motion. The examination shall be continued from day to day, excluding weekends and holidays, if not completed on that date, and shall be taken before an officer authorized to record the testimony.
51. This Motion cannot proceed under Bankruptcy Rule 7030 as there has been no commencement of an adversary action and there are no adversaries pending.
52. This Motion cannot proceed under Bankruptcy Rule 9014, as this is not a contested matter.
53. Upon information and belief, Debtor’s fraudulent actions took place within one (1) year of Debtor filing for bankruptcy protection.
