Byrne companies accused of fraudulent transfer
by Rick Catlin. Islander Reporter
U.S. Federal Bankruptcy Court trustee Angela Welch Esposito recently filed 24 motions of fraudulent transfer in the involuntary bankruptcy of former GSR Development LLC principal Robert Byrne.
Esposito, assisted by attorney Steve Berman, filed the motions against the Robert T. Byrne revocable trust agreement and the Arlene A. Byrne revocable trust agreement. Arlene Byrne is the ex-wife of Robert Byrne. The couple divorced in 2006 and the trusts are allegedly part of their divorce settlement.
Esposito filed the motions against six people and 24 LLCs formed by the Byrnes in the trusts, including the “American Liberty for Cosmic Property LLC.” Esposito alleges that as much as $7 million was fraudulently transferred through the trusts.
Byrne was forced into involuntary bankruptcy by Island businessman Kent Davis, Island residents Mel and Carol Yudofsky and former Island resident Patricia Hart after he failed to repay their investments in his now bankrupt company, GSR Development LLC.
The creditors mentioned were able to force Byrne into bankruptcy because he issued a personal guarantee for their investments and presented a personal net worth statement of $42 million at the time of his guarantee, then failed to pay when the investments became due.
GSR itself is in the final throes of bankruptcy and no unsecured creditor except for Cynthia Graeff has ever been paid in that case. Graeff had a claim for $25,000 against Byrne that was eventually settled.
An estimated $7 million in unsecured claims is involved in the GSR bankruptcy.
Esposito also reported to federal bankruptcy Judge K. Rodney May, who is also overseeing the GSR bankruptcy, that the initial creditors meeting in the Byrne bankruptcy has concluded. Representatives from the Federal Bureau of Investigation and the Manatee County Sheriff’s Office attended the creditors meeting, but declined to comment.
The court set June 16, 2008, as the final date for proof of claims to be submitted to the court.
Robert Byrne, formerly of Holmes Beach, lists a Chicago address with the bankruptcy court.
Byrne’s former GSR partner, Steve Noriega, is not part of the involuntary bankruptcy, but is still part of the GSR bankruptcy case. He has given a Tampa address to the bankruptcy court. |
