Scheef & Stone is pleased to announce a significant courtroom victory in a complex fraudulent transfer case involving the improper transfer of ownership interests in a Texas long-term care hospital.

After acquiring controlling ownership of the hospital, the purchaser failed to pay a $4.2M Promissory Note issued to the seller. Instead of honoring its commitments to the seller, the individual owners of the purchasing company orchestrated a series of undisclosed transfers through a maze of companies, shifting ownership of the hospital to entities under their control before eventually selling to an unaffiliated transferee. These transfers rendered the purchaser insolvent and were made without receiving reasonably equivalent value in exchange for the hospital ownership interest.

Recognizing the gravity of the situation, Scheef & Stone attorneys took action. Led by Brent Kugler (lead trial counsel), with Shirley Rose (trial co-counsel), LaDawn Nandrasy (jury charge), and Abbye West (associate), the legal team presented a compelling case showing the multiple fraudulent transfers of the hospital ownership interests through various transferee companies.

Following a six-day trial, the jury found that the defendants who ultimately acquired the hospital did so in violation of the Texas Uniform Fraudulent Transfer Act, and that those defendants gained $5.2 million in value from the fraudulent scheme. The jury additionally found that $850,000 in value was transferred to other defendants who directly benefited from the scheme.

This verdict reinforces the fundamental principle that businesses must operate with transparency and integrity and that creditors have the ability to pursue claims against those who attempt to avoid financial obligations through fraudulent means.

At Scheef & Stone, we are committed to protecting our clients from fraudulent business practices and ensuring justice prevails in complex financial disputes.

For more information about our business litigation practice, please contact us.

We are pleased to announce that three Scheef & Stone attorneys have been recognized in the 2024 edition of Texas Rising Stars®, published by Super Lawyers. All three attorneys are based in the firm’s Frisco office.

The three attorneys named to the 2024 Texas Rising Stars list are:

• T. Chase Garrett
• Taylor L. Harris
• Josh Wahl

Attorneys included in the Texas Rising Stars list must be 40 years old or younger or in practice for no more than 10 years. No more than 2.5% of lawyers in Texas are included in the Texas Rising Stars list each year. Honorees are selected using a patented multiphase process combining peer nominations and evaluations with independent research. Candidates are evaluated on 12 indicators of peer recognition and professional achievement. Super Lawyers is part of Thomson Reuters.

The full methodology for the Super Lawyers and Rising Stars lists is available here.

Scheef & Stone congratulates our own Mark Hill on his recent election to the Frisco ISD Board of Trustees. Mark was elected on May 6, 2023, for the Place 5 seat and his ceremonial swearing-in took place at his first Board meeting on June 12th. “As a resident of Frisco for almost twenty years, I have seen the City of Frisco grow and succeed in large part due to the Frisco ISD,” Mark said. “We are blessed to have great parents and students throughout our community, as well as many of the finest educators in the State. Frisco ISD is a leader in public education, and I look forward to helping that tradition continue for years to come.”

With 75 campuses (and growing) located throughout Frisco, as well as in North Plano, West McKinney and Little Elm, Frisco ISD is one of the ten largest school districts in the State of Texas, and the largest “A” rated district in the state. It’s also the largest employer in Frisco with over 8,000 employees, boasts a student count of over 67,000, and has an annual budget in excess of $700 million.

The Frisco ISD Board is comprised of seven elected Trustees that serve as the district’s policy-making body and are elected by the citizens of Frisco ISD to three-year terms. For over 20 years, the Frisco ISD has partnered with the City of Frisco on numerous major projects including the Ford Center at The Star and Dallas Cowboys, PGA of America Headquarters, Toyota Stadium and FC Dallas, and many more.

Mark has dedicated himself to the best interests of the firm’s clients for years, and we applaud his determination to share that same heart of service to benefit the larger Collin County community.