FEDERAL FILING: “The primary assets of the Debtor are moveable and can be transferred and secreted away with relative ease, as has been demonstrated by the current lack of possession of all such vehicles.”
READ THE DOCUMENT, LIST OF MISSING CARS.
BY: ANDREW COLTON | Editor and Publisher
BOCA RATON, FL (BocaNewsNow.com) (Copyright © 2022 MetroDesk Media, LLC) — The Federal Trustee assigned to oversee the Chapter 7 bankruptcy filing of Excell Auto Group alleges that Scott Zankl and his wife Kristen Zankl are lying about the assets of the company they run.
Attorney Nicole Testa Mehdipour, in a filing obtained by BocaNewsNow.com, is asking a federal judge to order the Zankls to turn over materials, records, and even cars that they allegedly claim they do not have.
“In response to the Trustee’s initial demand for the customary asset and banking information, on April 8, 2022, Debtor’s counsel replied that there were no bank accounts in the name of the Debtor and no physical assets located anywhere.”
Mehdipour, the Federal Bankruptcy Trustee, also wrote this:
“Notwithstanding the misinformation and lack of disclosures by the Debtor, the Trustee through a review of public filings, information from active creditors, and local news stories requiring the Trustee to investigate possible mismanagement and fraud. Further, the Trustee is investigating the relationships, including vehicle and other business transactions, between the Debtor, its insiders and affiliates, specifically, a number of high-end motor vehicles that are no longer in the Debtor’s possession, having been transferred, voluntarily or involuntarily, by the Debtor to third parties shortly before the Petition date.”
Then she adds this zinger:
“The Debtor was a purveyor of very high-end motor vehicles. The primary assets of the Debtor are moveable and can be transferred and secreted away with relative ease, as has been demonstrated by the current lack of possession of all such vehicles. The remaining assets would be cash which can also be transferred away with ease. For example, while visiting the Debtor’s business premises, the Trustee came across an account statement for the month of March 2020, through which over $21 Million was deposited and withdrawn for the month. On the petition date, the account had a negative opening value and closing date.”
Excell Auto Group filed for bankruptcy protection on April 7th, after the company was sued by the financing companies that lend Excell money to buy its high-end and exotic cars. One of the suits accuses Scott and Kristen Zankl of perpetrating “out of trust” fraud. That is explained as a dealer taking a loan to buy a car, selling the car, but not repaying the loan once the car is sold.
Scott Zankl told BocaNewsNow.com that he did nothing wrong and that the lawsuits would be resolved by the end of last week. They continue. The Excell Auto Group showroom at 1001 Clint Moore Road remains empty.
A document obtained by BocaNewsNow.com suggests that the Zankls used their Seven Bridges home, and a boat, as collateral for a loan that they are accused of defaulting on.
The federal bankruptcy filing indicates Excell has as much as $50M in debt. BocaNewsNow.com published checks that allegedly bounced from the company last week.
Read the latest filing, below. There is also a list of the high-end cars apparently missing.EXCELL-AUTO-TRUSTEE
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