A secretary and president of a Bridgeport-based company that is currently in bankruptcy proceedings are targets of a federal lawsuit.
Comvest Ltd. is a West Virginia corporation that invested in other business entities and worked to provide municipalities with options through lease purchasing. The company filed for Chapter 11 bankruptcy last year.
Seeking a trial by jury and a return of company assets, Martin P. Sheehan, trustee of the company's bankruptcy estate, filed the suit Oct. 13 in U.S. District Court in Clarksburg against company secretary and Bridgeport mayor, James R. Christie, and company president H. David Cutlip.
According to the suit, Christie and Cutlip transferred Comvest's assets to other companies that they had interests in, including Comvest Capital LLC, Comvest Leasing, Inc., Comvest Export Finance Co., Inc., Comvest Export Capital, Co., Inc., Methane Recovery Solutions, LLC., Lunasol Sounds LLC., Moon and Stars Studio, LLC., Moon and Stars Nashville, Inc., Christie-Cutlip Development Co., Inc. and Holiday Music and Production LLC.
"(Defendants) acted in gross and reckless disregard of their obligations to the debtor, Comvest, Ltd., Inc., and its creditors and shareholders," the suit stated.
Sheehan claimed that numerous transfers were made to these companies for "less than reasonably equivalent value," leaving Comvest with "unreasonably small capital."
Sheehan requests the court to award a sufficient sum to make the company's bankruptcy estate whole. Gregory H. Schillace from Shillace Law Office in Clarksburg is representing Cutlip. No response has been filed for either defendant.
"It was my client's intention throughout his entire career to pay everyone he was going to pay and do it in an appropriate matter," Schillace said. "My client early on agreed with the trustee and gave the trustee an option to take any interest that my client had in any of these other entities."