St. Luke's has responded to Lisa Bundy's late motion to quash their subpoenas, and cross-moved to compel. St. Luke's is all but sure to prevail on both. In the process, St. Luke's has supplied further details which to this point were unknown (at least to me). For example:
- bank records indicate that Lisa Bundy signed off on a $487,167.36 fraudulent conveyance of “certain funds belonging to Ammon E. and Lisa M. Bundy” to Abishhusbondi Inc, an entity Debtor Ammon Bundy used to hold his personal assets.
- Lisa Bundy used accounts set up in her name to further schemes to move money out of Debtor Ammon Bundy’s bank accounts
- Lisa Bundy, together with her husband, has already attempted to fraudulently transfer at least two large assets—an orchard property in Emmett, Idaho, and approximately $475,000 in cash.
- Lisa Bundy has already directly participated in at least two fraudulent transfers of assets in the aggregate value of approximately $1.7 million
To this non-bankruptcy-practitioner's mind, St. Luke's will then have two options: seek dismissal of the bankruptcy or contempt. The latter seems far more likely. St. Luke's is well down the path to clawing back fraudulently-transferred assets in the current proceeding, not to mention establishing a convincing record for charges of bankruptcy fraud. Why start over? As we've discussed above, I think that St. Luke's (and likely the Trustee as well) would oppose a voluntary dismissal motion from Bundy.
Bundy may be able to drag this out for a few more months, but the handwriting is on the wall.