Bankruptcy seeks to shield Burgdorf man from debt incurred in court judgment – Loveland Reporter-Herald

DENVER — An effort by a Burgdorf man to rid himself of debt through Chapter 13 bankruptcy may be foiled by federal law enforcement.

The Law: US Code Section 523 of Title 11, which states that debt incurred under false pretences or fraud cannot be discharged in bankruptcy.

The US Bankruptcy Court for the District of Colorado is determining whether federal law will apply to Christopher Patrick Boyd’s reorganization bankruptcy.

Christopher Boyd, along with his father, former bankrupt BestBank chairman Thomas Alan Boyd, lost a lawsuit decided in Denver District Court in January 2020 and upheld by the Colorado Court of Appeals on September 9, 2021 Thomas Boyd was found liable for securities fraud and fraudulent scheme. Christopher Boyd and all of the defendants in the case were found liable for misrepresentation, non-disclosure, concealment and negligent misrepresentation. Thomas Alan Boyd lives in Longmont.

The case was brought by Hemp Recovery Co. LLC, which was the assignee of debts owned by Adam A. Desmond and DD Needle Rock Farms LLC, a hemp grower. Needle Rock Farms is a Crawford, Colorado company.

As alleged in the lawsuit filed on February 6, 2019, Desmond and Needle Rock Farms, based on representations made by the Boyds, agreed to transfer 4,415 pounds of hemp flower, valued at $75 per pound, to Christopher Boyd’s company, Foothills Ventures LLC of Burgdorf, for the processing and extraction of its CBD oil. Needle Rock and Foothills had agreed to a 50/50 split of proceeds from the sale of hemp-derived products, according to the lawsuit.

Foothills, however, did not have the capacity to process the hemp, and when Needle Rock Farms requested the return of the hemp, it could not be found.

The court determined, and the appeals court upheld, that there was fraud and that the father-son team and the companies they controlled were liable for the damages. Thomas Alan Boyd was “jointly and severally” liable for $606,714 in damages, and Christopher Boyd was liable for $337,306, also jointly and severally, meaning that each of them and their companies share equally in the liability for damages.

In 2019, a company named Hemp Recovery Co. LLC, which shares a Crawford, Colorado address with Needle Rock Farms, was formed. Since the conclusion of the trial, he has sought to cash in on the judgment. Hundreds of court filings, garnishments and motions to compel participation, motions to allow service of legal documents by certified mail instead of in-person delivery when service has been dodged, and other maneuvers Laws dot the Denver District Court case file.

On July 12, 2022, Christopher Boyd filed for Chapter 13 bankruptcy reorganization, which resulted in a court order to stay or discontinue proceedings as they applied to his share in the campaign. recovery.

In Boyd’s first Chapter 13 income statement, dated July 8, he reported a net monthly income of $454 and his wife’s net monthly income of $3,101, or $45,030 for one year. On September 21, he amended the income statement to claim a monthly income of $12,385 and his wife’s monthly income of $6,162, which equals an annual income of $224,934. The amended statement mentioned the ability to pay $272 per month for his debts.

Bankruptcy trustee Adam Goodman objected to the Chapter 13 plan on Sept. 28, saying he needed additional documents to back up Boyd’s income statement. The trustee also said that Christopher Boyd has an 80% stake in High Altitude Wellness LLC and Foothills Ventures LLC, and he wanted to know the value of those companies.

Then, on October 5, Hemp Recovery Co. also objected. The Chapter 13 plan “was not filed in good faith due to the debtor disclosing monthly income from a business of $454 in his initial Chapter 13 CMI, and following an objection, has later revealed that this amount was actually 27 times greater at $12,423.Yet the debtor provided no documentation…Even after disclosing the actual amount of his income, the debtor made no attempt to alter his payment plan.

Hemp Recovery requested that the reorganization bankruptcy case be dismissed or converted to a Chapter 7 liquidation.

Boyd disputed Hemp Recovery’s filing allegations in a confirmation status report dated Oct. 19.

Hemp Recovery responded a day later with an “immediate” motion – that is, a request for immediate action – to serve a writ of garnishment on Christopher Boyd’s attorney, Sean Cloyes, in the purpose of securing the assets held by Boyd. The motion was filed immediately because “the judgment creditor [Hemp Recovery] fears that C. Boyd will quickly move assets from Foothills in response.

The filing details Hemp Recovery’s attempts to personally serve Boyd “no less than eight times, all of which were unsuccessful.

“The process server that [sic] visited the residence of MC Boyd noted that he had erected a gate which prevented him from knocking directly on the door, and further stated that “the blinds are always closed and there are always cars parked in the garage . He [Boyd] is to be very careful between the dog and the bins that we take out and bring.’ »

The court denied the petition, saying the collection effort had been put on hold pending the bankruptcy filing.

The court’s denial then prompted a motion on Oct. 24 from Hemp Recovery opposing the reversal of the judgment in the missing hemp case, citing federal law that limits debt forgiveness in bankruptcy when fraudulent acts resulted in the debt.

The court has set a hearing for January 31, 2023 to resolve the issues.

Thomas Werge of the Werge Law Group, which represents Hemp Recovery, said his client “is the one who said he wanted to hold these people accountable. … Chris Boyd filed for bankruptcy to avoid paying a judgment for fraud. We want to make sure he doesn’t get released [of the debt].”

A message to Christopher Boyd’s attorney was not returned.

The original case, Hemp Recovery Co. LLC v Thomas Alan Boyd, Christopher Boyd, Foothills Ventures LLC and Sling Logistics LLC, is 2019cv30498. The appeal case number in the Colorado Court of Appeals is 2020CA451.

Christopher Boyd’s bankruptcy case in federal bankruptcy court for the District of Colorado is numbered 22-12455.

This article was first published by BizWest, an independent news agency, and is published under a license agreement. © 2022 BizWestMedia LLC.