The U.S. Trustee Program (USTP) just lately obtained a judgment denying a chapter discharge of greater than $12.5 million to a Texas man who hid property and lied in his chapter case to evade his collectors, together with buyers in his cryptocurrency Ponzi scheme.
On Aug. 1, the Bankruptcy Courtroom for the Southern District of Texas entered a default judgment in opposition to chapter 7 debtor Nathan Fuller. Fuller owned Privvy Investments LLC, a cryptocurrency funding firm that he used to divert investor funds. Fuller spent a portion of the cash on luxurious items, playing journeys, and an almost $1 million house for his ex-wife, who was concerned within the enterprise and with whom Fuller nonetheless resided.
“Fraudsters in search of to whitewash their schemes is not going to discover sanctuary in chapter,” stated U.S. Trustee Kevin Epstein of Area 7, which incorporates the Southern District of Texas. “The USTP stays vigilant for instances filed by dishonest debtors, who threaten the integrity of the chapter system.”
Fuller filed for chapter in October 2024 after a receiver was appointed to take possession of his property in a lawsuit introduced by buyers in Texas state court docket. Following an investigation, the USTP’s Houston workplace filed a grievance objecting to Fuller’s discharge alleging that Fuller had hid intensive property, didn’t maintain data, and made a number of false oaths relating to his chapter case and a separate chapter submitting for Privvy.
After being held in civil contempt for failing to adjust to court docket orders, Fuller admitted that he had operated Privvy as a Ponzi scheme and fabricated documentation to advance the scheme. Fuller additionally admitted that he gave false testimony and falsified chapter paperwork to hinder the chapter 7 trustee appointed to manage his and Privvy’s chapter instances.
Following these admissions, Fuller failed to answer the USTP’s grievance, resulting in a default judgment within the USTP’s favor. In consequence, Fuller stays personally accountable for his money owed – together with greater than $12.5 million in unsecured money owed listed in his chapter schedules – and collectors might proceed collections on claims in opposition to him.
The USTP’s mission is to advertise the integrity and effectivity of the chapter system for the profit of all stakeholders — debtors, collectors and the general public. The USTP consists of 21 areas with 88 area places of work nationwide and an Govt Office in Washington, D.C. Be taught extra in regards to the USTP at www.justice.gov/ust.
