By: Mary Ann Pekara
December 13, 2010
Fairvue Plantation, Tennessee developer Leon Moore has been accused of financial fraud by the bankruptcy trustee overseeing his liquidation case.
According to the Gallatin News Examiner, Moore is accused of transferring property to family trusts during the housing bubble collapse to avoid having the property seized by creditors. Items allegedly transferred include a mansion, valued at the time of the of the transfer at $9 million. The trustee has claimed that Moore's alleged transfer was "made with the intent to hinder, delay or defraud creditors."
Moore's defense attorney has denied the allegations, and has claimed that discrepancies noticed by the trustee must have been the result of oversight rather than the intent to defraud.
Moore filed Chapter 7 bankruptcy in May, listing assets valued at $1.6 million and liabilities valued at $29.8 million. Most of the liabilities are unsecured, according to the news source.
Most consumer bankruptcies are filed under Chapter 7 or Chapter 13 of the bankruptcy code.