Chapter 7 trustee Randy Osherow filed the motion to dismiss the liquidation case on the grounds that Van Gundy failed to meet his obligations under the bankruptcy code.
Van Gundy did not show up for a meeting of creditors conducted by telephone on Thursday. These meetings allow the trustee and the creditors to question a debtor.
James Wilkins, Van Gundy’s bankruptcy attorney, told Osherow at the start of the meeting that Van Gundy had been advised by her doctor not to attend.
“The doctor says she can’t testify right now,” Wilkins said.
Van Gundy said she suffered a brain injury late last year after falling and hitting her head on a concrete table at her home. She didn’t know what caused the fall, but said it caused memory problems.
The New Braunfels businesswoman bragged that she made more than $10 million buying cheap prefab homes, fixing them up and flipping them. She has been featured on numerous podcasts and other programs to tout her investing prowess.
But some who have invested with her expecting big returns allege she reneged on payment of principal and interest on the loans they made. They say she orchestrated a Ponzi scheme that collectively cost them and others at least a few million dollars.
The Securities and Exchange Commission investigated.
Various investors have sued Van Gundy and his company, Outstanding Real Estate Solutions Inc., or ORES, including for fraud, civil conspiracy to defraud, and breach of loan agreements.
Van Gundy responded by filing for personal bankruptcy on April 27, putting litigation against her on hold.
“If Ms. Van Gundy’s bankruptcy is dismissed, then the multiple lawsuits pending against her may proceed in the various courts and she will not receive a discharge of her debts,” said San Antonio attorney David Jed Williams. , who represents a group that sued her. and his company.
The trustee wants the bankruptcy dismissed “without prejudice,” meaning Van Gundy could refile the case. Wilkins did not immediately respond to a request for comment on Tuesday, so it could not be determined whether he would oppose the motion to dismiss.
Williams said that even if the bankruptcy is not rejected, he expects many creditors to object to Van Gundy receiving a discharge from the debts she owes them due to allegations of her fraudulent conduct. .
In his bankruptcy papers, Van Gundy declared approximately $1.6 million in assets and nearly $353,000 in liabilities. His home, valued at $1.5 million, and two vehicles make up most of his assets. She did not list any financial assets. She described as “unknown” the sums due to more than a dozen creditors.
Some of the lawsuits against Van Gundy and ORES were filed in Comal County, where she resides.
Prior to the bankruptcy, Comal County Judge Dib Waldrip appointed a receiver to take over ORES. She did not file for bankruptcy.
The creditors’ meetings have not been particularly enlightening for creditors who want to know where their money went.
During the first meeting on May 26, Van Gundy told those who listened to her a hundred times that she could not recall, remember or know the answer when questioned.
That meeting, also conducted by phone, was cut short after Wilkins said Van Gundy suffered two seizures during the proceedings.
The meeting was rescheduled for June 23 but it also ended early because she had a seizure, her lawyer said. The meeting continued until July 14, but Van Gundy did not appear. Thursday marked the last reset.
“It’s really up to the (bankruptcy) judge how he wants to proceed,” Osherow said. “Obviously I can’t do my job if Ms. Van Gundy doesn’t show up.”
Comments are closed.