Volume 50, Issue 4 - April 2015

Legislation&Legal

Dlubaks Deny Allegations by Plan Administrator in Bankruptcy Case

In February, the plan administrator for Dlubak Corp.’s ongoing bankruptcy case filed a complaint in the United States Bankruptcy Court of the Western District of Pennsylvania against Frank and Ave Maria Dlubak “to avoid and recover fraudulent transfers.” The Dlubaks, the defendants in the case, have filed an answer and affirmative defenses, denying allegations of fraudulent transfers.

The complaint, filed by Lawrence C. Bolla on February 12, alleges four counts of fraudulent transfers, a count of Recovery of Avoided Transfers, a count of Breach of Fiduciary Duty to Debtor, and a count of Breach of Fiduciary Duty to Creditors—all of which the Dlubaks deny and request that the court judge in their favor.

The complaint claims “The Debtor made transfers during the Relevant Period in the amount of approximately $1,185,254.59 to or for the benefit of the Dlubaks.” It alleges that those transfers were deposited into one of their joint bank accounts “of which they enjoyed unfettered use and access.” The Dlubaks deny “that any purported transfer is improper, and strict proof is thereof demanded.”

In the recent defense filing, the Dlubaks affirm that “the Plan filed by Committee in the Dlubak Bankruptcy Case acknowledges that all secured creditors were paid in full out of the sale of the assets of Dlubak Corp.” The Dlubaks deny that any transfers were “made to the detriment of the creditors,” as alleged in the complaint, and that all “transfers to defendants were made in good faith, without any intent to hinder, delay or defraud any creditors of Debtor.”

On March 18, in the wake of the filings, the court ordered the parties to meet and confer within 14 days “to discuss the terms and conditions of a Joint Discover Plan and a Statement of Estimated Time of Trial.”

Dlubak Specialty Glass, which is owned by Consolidated Glass Holdings, is not a part of the bankruptcy proceedings.


Texas-Based Glass Company
Owner Admits to Tax Fraud


The owner of Waco, Texas-based glass company Rocket Glass and Mirror pled guilty to tax fraud and making false statements to the government.

Douglas Lynn Lyon, 62, admitted to filing false tax returns and underreporting his business income from 2006-2012. Lyon entered his guilty plea February 26, and his sentencing is set for April 22 in the Western District of Texas.

According to court documents, “Lyon used generic invoices he obtained from an office supply store for these jobs rather than QuickBooks, which he used to record other jobs,” The Waco Tribune-Herald reports. “This process allowed Lyon to conceal the gross receipts from the cash tickets from Rocket’s in-house bookkeeper.”

Records that Lyon gave to a certified public accountant did not contain information about the “skimmed” receipts, which totaled $937,890 in payments over the six-year period and resulted in a federal tax loss of $285,808, according to the report.

Federal authorities allege that Lyon cashed the checks from the payments that were unaccounted for at the bank where Rocket’s business account resides. He then deposited the cash in increments at a different bank where he had a personal account and “used the funds concealed in this manner for his personal benefit.”

Lyon’s offense is punishable by a maximum of three years in prison and a fine totaling as much as $100,000, the report states.

6 Years Douglas Lyon
admitted to filing false tax returns and underreporting his business
income from 2006-2012.
Lyon’s “skimmed” receipts totaled $937,890 in payments over the 6-year period, resulting in a
federal tax loss of $285,808.
Lyon’s offense is punishable by a
maximum of three years
in prison and a fine
totaling as much as $100,000.

USG
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