Norman Rouse, lawyer for the Ellis family, says Lamar Grain and Feed and Lamar Feed and Grain are not the same company and the family should not be forced to supply Lamar Feed and Grain's records when a hearing is held Tuesday, Oct. 9, in the law office of Checkett and Pauly in Carthage. See if you can makes heads or tails out of this document:
Comes now, the debtor, Lamar Grain & Feed, LLC, by and through its attorney of record, Norman E Rouse, and for its response states to the Court as follows:
1. The debtor, Lamar Grain and Feed, LLC does not object to the 2004 Examination being conducted on October 9, 2007 or the documents requested by the Trustee with respect to the
LLC.
2. However, in paragraph 2, the Trustee is requesting that Lamar Feed and Grain, LLC produce all bank statements, cancelled checks, and tickets of Lamar Feed and Grain, LLC for the years 2005 through 2007, the original corporate minute book of Lamar Feed and Grain, LLC, the original corporate minute book of Lamar Grain and Feed, LLC, tax returns for 2004 through 2006 for both Lamar Grain and Feed, LLC and Lamar Feed and Grain, LLC.
3. There is no Lamar Feed and Grain, LLC. There is Lamar Feed and Grain, Inc.
4. Lamar Feed and Grain, Inc., is not the debtor in these chapter 7 proceedings. The debtor, Lamar Grain and Feed, LLC, is owned by Ronald Ellis and Carolyn Ellis, and was operated for the last two (2) years by Jared Ellis and Jessica Ellis.
5. The primary business of Lamar Grain and Feed, LLC was the buying and selling of grain and feed by-products.
6. Lamar Feed and Grain, Inc., is a corporation owned by Mr. Ronald Ellis and operated by Mr. Ronald Ellis, whose primary business is buying rejected dog food and grinding it for resale as hog feed.
7. The Trustee has not reviewed the records of the LLC and there is no evidence that Lamar Grain and Feed, LLC is inter-related with Lamar Feed and Grain, Inc.
8. At this stage, Lamar Feed and Grain, Inc., should not be forced to give up its private business documents.
9. WHEREFORE, Lamar Grain and Feed, LLC prays that this Court enter an order
striking paragraph 2 of the Amended Motion for Order Directing Examination Pursuant to 2004 of the Rules of Bankruptcy Procedure and for such other and further relief as the court may deem just and proper.
Based on this filing, it is easy to understand why Checkett might have some concerns about the Ellis family finances.
A federal bankruptcy court judge on Sept. 21 ordered owners of Lamar Grain and Feed to undergo a 2004 examination, which means far greater scrutiny of company financial records.
As originally detailed in the Sept. 18 Turner Report, the motion which the judge okayed calls for an Oct.17 meeting at the law offices of Checkett and Pauly in Carthage. A 2004 examination is called for when it appears there are problems with the records of someone who has filed for bankruptcy.
Company owners Ronald Ellis, Carolyn Ellis, Jared Ellis, and Jessica Ellis will be required to "produce all computer hardware of Lamar Grain & Feed LLC, all bank statements, cancelled checks, and deposit tickets of Lamar Grain & Feed, LLC for the years 2005 through 2007."
It also requests "the original corporate minute book of Lamar Feed & Grain, LLC, the original corporate minute book of Lamar Grain & Feed, LLC, tax returns for years 2004-2006 for both Lamar Grain & Feed, LLC and Lamar Feed & Grain, LLC."
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1 comment:
Sounds kinda like piercing the veil of the corporations, then the court can go after anyone connected with either of them. Once that camel gets his nose under their tentflap, they will soon have a tent full of camel, in this case the court.
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