Total Pageviews

Saturday, March 3, 2018

Complaint against Steven Ziaja

Folks, again I apologize for the format of this document but it is the best I can do from my current location.

IN THE UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ALABAMA, NORTHERN DIVISION IN RE: PRICEVILLE PARTNERS, LLC, ___________________________________ Stuart M. Maples, Trustee for PRICEVILLE PARTNERS, LCC, Plaintiff, vs. STEVEN ZIAJA, Defendant. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) CASE NO. 16-80675-CRJ11 ADVERSARY CASE NO. ____________ COMPLAINT COMES NOW the plaintiff Stuart M. Maples, Trustee for Priceville Partners, LLC ("Trustee"), and files this Complaint to recover Estate funds and things wrongfully paid or transferred to the Defendant, Steven Ziaja, and for other just relief. Trustee states his grounds as follows: PARTIES 1. Priceville Partners, LLC is a Debtor in this Court, having filed a Chapter 11 Bankruptcy Petition on March 4, 2016. 2. Upon information and belief, Steven Ziaja is a resident of Morgan County, Alabama, and is over the age of nineteen (19). JURISDICTION 3. This adversary proceeding is commenced pursuant to Rule 7001(1) of the Federal Rules of Bankruptcy Procedure. 4. This Court has subject matter jurisdiction in accordance with 28 U.S.C. § 1334. Case 16-80675-CRJ11 Doc 457 Filed 03/02/18 Entered 03/02/18 12:20:08 Desc Main Document Page 1 of 5 5. Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409 as this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A), (E) and (O). FACTUAL ALLEGATIONS 6. From June 2013 to February 2016, Gregory R. Steenson (“Steenson”) owned a 40% membership interest in Priceville Partners, LLC (“Debtor”), and essentially served as its General Manager for sales and related operations. In his capacity as such, Steenson was authorized to sign check of Debtor, collect money for deposit into the banking account(s) of Debtor, and use the credit card of Debtor, all for company purposes. Steenson, however, was never authorized to utilize assets of the Debtor for his personal benefit. 7. Debtor has also conducted business under the trade name “Performance Auto Sales.” 8. Steenson expanded the business of Debtor to open a Title Mart in Hartselle, Alabama. 9. Steven Ziaja (“Defendant”) was involved in the supervision and operation of the Title Mart in Hartselle, Alabama, and was an insider who exercised control over the Debtor. 10. Between March 11, 2014, and October 23, 2015, Steenson paid Defendant approximately $200,608.25 from Priceville Partners, LLC's operating account. 11. Steenson had no legitimate business purpose for paying the Defendant, and that act was outside the scope of his authority as manager of the Debtor. 12. This money paid to Defendant purports to represent items sold by Defendant to Debtor; however, Defendant mischaracterized these payments as Defendant did not own the items he claims to have sold and, moreover, the money paid did not represent items sold by Defendant. Case 16-80675-CRJ11 Doc 457 Filed 03/02/18 Entered 03/02/18 12:20:08 Desc Main Document Page 2 of 5 13. Steenson sold, on behalf of Debtor, to Defendant or Defendant’s separate business venture certain vehicles at a loss to Debtor. 14. Debtor provided to Defendant money to acquire cars to sell on Craigslist. 15. Defendant then advertised said vehicles on such platforms as Craigslist, with Defendant as seller and under Defendant’s personal name, as if the vehicles were Defendant’s own. 16. Said Craigslist transactions represented cash sales paid to Defendant and which were not remitted by Defendant to Debtor. 17. Said Craigslist transactions represented a loss to Debtor. COUNT ONE UNJUST ENRICHMENT 18. Trustee re-alleges and incorporates all the preceding paragraphs as if fully set out herein. 19. Debtor received no benefit in exchange for the payments made by Steenson, and Defendant was unjustly enriched by those payments. 20. Defendant is due to repay the money described hereinabove which unjustly enriched Defendant to the detriment of Debtor. WHEREFORE, Trustee prays for a judgment in favor of the Estate and against Defendant Ziaja ordering the return to Debtor of the amounts hereinabove described. Trustee requests such other, further, or different relief to which Debtor may be entitled, including but not limited to attorneys’ fees, costs, interest, and damages as the Court deems just and proper. Case 16-80675-CRJ11 Doc 457 Filed 03/02/18 Entered 03/02/18 12:20:08 Desc Main Document Page 3 of 5 COUNT TWO FRAUDULENT TRANSFERS UNDER 11 U.S.C. § 548(a)(1)(B)(i)-(iv) 21. Trustee adopts and incorporates all preceding paragraphs as if fully set forth herein. 22. Debtor received less than a reasonably equivalent value in exchange for the payment of money to Defendant, which transfer was fraudulent under § 548(a)(1)(B)(i)-(iv) and without benefit to the Estate. 23. The transfer of the money was made while the Debtor was insolvent or became insolvent as a result of such transfer. 24. The transfer of the money was made within two years before the date of filing the petition. WHEREFORE, Trustee prays for a judgment in favor of the Estate and against Defendant Ziaja ordering the return to Debtor of the amounts hereinabove described. Trustee requests such other, further, or different relief to which Debtor may be entitled, including but not limited to attorneys’ fees, costs, interest, and damages as the Court deems just and proper. COUNT THREE MONEY HAD AND RECEIVED 25. Trustee re-alleges and incorporates all the preceding paragraphs as if fully set out herein. 26. Defendant owes the Estate $200,608.25 because of money taken from the Estate and paid to Defendant with no benefit to the Estate. 27. Defendant owes the Estate money taken by Defendant in the Craigslist transactions and representing a loss to Debtor. 28. Defendant holds money which in equity and good conscience belongs to the Estate and has not returned said money to the Estate. Case 16-80675-CRJ11 Doc 457 Filed 03/02/18 Entered 03/02/18 12:20:08 Desc Main Document Page 4 of 5 WHEREFORE, Trustee prays for a judgment in favor of the Estate and against the Defendant Ziaja in the amount of $200,608.25 and those amounts Defendant received in the Craigslist transactions which represent a loss to Debtor. Trustee requests such other, further, or different relief to which Debtor may be entitled, including but not limited to attorneys’ fees, costs, interest, and damages as the Court deems just and proper. COUNT FOUR EQUITABLE SUBORDINATION UNDER 11 U.S.C. § 510(c) 29. Trustee adopts and incorporates all preceding paragraphs as if fully set forth herein. 30. Defendant has engaged in inequitable conduct by, among other things, facilitating fraudulent transfers. 31. Defendant’s actions have injured other creditors of the Debtor. 32. Subordination of Defendant’s debt is not inconsistent with the Bankruptcy Code. WHEREFORE, premises considered, Trustee prays for a judgment in favor of the Estate and against Defendant Ziaja for an amount to be determined by the trier of fact. The Trustee requests any other relief deemed appropriate by this Court. /s/ Stuart M. Maples STUART M. MAPLES MAPLES LAW FIRM, PC 200 Clinton Avenue West, Suite 1000 Huntsville, Alabama 35801 (256) 489-9779 – Telephone (256) 489-9720 – Facsimile smaples@mapleslawfirmpc.com DEFENDANT TO BE SERVED AT: Steven Ziaja 157 Dunlap Road Falkville, AL 35622 Case 16-80675-CRJ11 Doc 457 Filed 03/02/18 Entered 03/02/18 12:20:08 Desc Main Document Page 5 of 5

3 comments:

  1. Again Glenda, why haven’t you posted the Jeffrey’s family complaints?

    ReplyDelete
    Replies
    1. The blog is specifically about corrupt law enforcement officials, not Harold Jeffreys.

      Delete
  2. You just can’t stand the fact that Glenda doesn’t give a rats ass about you. You worthless POS’s are busted. If Jeffreys, the Layton’s, and the rest of you ass wipes go to jail nobody will miss you.

    ReplyDelete