Thursday, October 05, 2006

Stoller Bankruptcy Judge Issues Findings and Conclusions

On September 26, 2006, Judge Jack B. Schmetterer of the U.S. Bankruptcy Court for the Northern District of Illinois issued his Findings and Conclusions in connection with the court's August 31, 2006 order converting Leo Stoller's bankruptcy proceeding from Chapter 13 to Chapter 7. The conversion order was entered because of Stoller's lack of "business books and records from which his financial condition and income could be ascertained" and his transfer of valuable real estate to a family member shortly before the bankruptcy filing and "without apparent consideration." In re Stoller, Case No. 05 B 64075 (N.D. Ill.).

The court noted that Mr. Stoller has already filed an appeal from the August 31st conversion order, but nonetheless deemed it appropriate under applicable precedent to issue its Findings and Conclusions.

Among the Findings contained in the 30-page document are the following:
  • 140. Debtor obtains his income from trafficking in trademarks.

  • 141. The income of debtor is based on false assertions of trademark infringement and/or harm due to registration of the challenged party's trademark application.

  • 144. Given Debtor's record in his effort to enforce claims for trademark infringement to generate most of his income, his expectations of regular future income are doubtful. ***

Reportedly, the Chapter 7 trustee has filed a complaint in an effort to retrieve ownership of the real estate that Stoller transferred to his daughter.

Text Copyright John L. Welch 2006.


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