SE Texas Record

Tuesday, November 12, 2019

Transamerica Chapter 7 trustee alleges business was illegally transferred to other entities

Lawsuits

By Marian Johns | Nov 7, 2019

Money065

HOUSTON — Transamerica Mud Personnel alleges its former CEO along with other entities were involved in a scheme to transfer the bankrupt company's business to other entities after it faced Fair Labor Standards (FLSA) Act lawsuits. 

Ronald Sommers, Chapter 7 trustee for the estate of Transamerica Mud Personnel, LP filed a compliant Oct. 28 in Harris County District Court against New Tech Global Ventures, LLC, Oilfield Personnel Management and Larry Cress, alleging breach of fiduciary duty, aiding and abetting breach of fiduciary duty and alter-ego. 

The plaintiffs allege New Tech and its partner OMP, which provides consulting services to energy companies, "devised a scheme to transition all of the work out of the debtor (Transamerica) so by the time the FLSA litigation was ready, the debtor was nothing more than a shell entity....."

The plaintiffs seek monetary relief in excess of $1 million, trial by jury, interest, litigation costs and all other just relief. They are represented by attorney Timothy McCloskey of The McCloskey Roberson Law Firm PLLC in Houston. 

Harris County District Court case number 2019-78576

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