The client, Barae Pharmaceuticals had won a $2 million judgement against Bara Pharmaceuticals for the misuse of Barae’s name. Bara Pharmaceuticals had used Barae’s name inappropriately in the generic-label over-the-counter market. Bara, the defendant in the case, had closed down and filed for Chapter 7 bankruptcy when the judgement was entered. With the judgement entered and debt being incurred, the CEO and CFO of Bara had left the country and returned to South America. Additionally, the 125 employees had quit and only one low-level lab technician had remained.
Evidence of fraud is seen in the emptied bank accounts and pension funds. All major assets aside from some lab equipment, which are most likely not worth much, are left. Additionally, …show more content…
The judgement in the court case has the makings of an intentional tort. Bara Pharmaceuticals knew what it was doing when they used a name that was very similar to Barae. This misuse of the company name was purposeful and an example of willful and malicious injury by the debtor to another entity or property of the entity (The Law Offices of John Day, P.C., 2015). The property or the name of Barae had been damaged intentionally and therefore the intentional tort is invoked. As evident in the intention of Bara Pharmaceuticals, this judgement would not be discharged even if Chapter 7 bankruptcy had been allowed to go through. This solidifies Barae is a high priority creditor and there should be one of the first parties to get their settlement of any assets …show more content…
It is key to have the trustee of the Chapter 7 filing be aware of the intentional tort. Bankruptcy rules allow the creditors the use of very powerful tools like the use Rule 2004 and Section 341to interview and subpoena any information that could help them recover any assets possible. Looking into the intangibles may be the best way to get a valuable asset that can be liquidated. It is unlikely that the CEO and CFO would be extradited to the United States. The process of finding assets in a bleed-out scheme is not easy, but he bankruptcy court has a lot of power to seize fraudulent conveyances and find other hidden
Evidence of fraud is seen in the emptied bank accounts and pension funds. All major assets aside from some lab equipment, which are most likely not worth much, are left. Additionally, …show more content…
The judgement in the court case has the makings of an intentional tort. Bara Pharmaceuticals knew what it was doing when they used a name that was very similar to Barae. This misuse of the company name was purposeful and an example of willful and malicious injury by the debtor to another entity or property of the entity (The Law Offices of John Day, P.C., 2015). The property or the name of Barae had been damaged intentionally and therefore the intentional tort is invoked. As evident in the intention of Bara Pharmaceuticals, this judgement would not be discharged even if Chapter 7 bankruptcy had been allowed to go through. This solidifies Barae is a high priority creditor and there should be one of the first parties to get their settlement of any assets …show more content…
It is key to have the trustee of the Chapter 7 filing be aware of the intentional tort. Bankruptcy rules allow the creditors the use of very powerful tools like the use Rule 2004 and Section 341to interview and subpoena any information that could help them recover any assets possible. Looking into the intangibles may be the best way to get a valuable asset that can be liquidated. It is unlikely that the CEO and CFO would be extradited to the United States. The process of finding assets in a bleed-out scheme is not easy, but he bankruptcy court has a lot of power to seize fraudulent conveyances and find other hidden