Pennsylvania Record

Friday, February 21, 2020

Equity firm accused of funneling more than $10 million through sham companies to avoid paying judgment

Federal Court

By Marian Johns | Feb 12, 2020

Money

PHILADELPHIA — A Pennsylvania private equity company is claiming a fellow equities company funneled more than $10 million into fake companies and its affiliates to avoid paying a court-ordered judgement. 

Warren Hill LLC filed a complaint Jan. 27 in the U.S. District Court for the Eastern District of Pennsylvania against Neptune Investors LLC, AHG Group LLC and others, alleging violation of the Pennsylvania Uniform Voidable Transactions Act and unjust enrichment.

Warren Hill entered into a membership interest purchase agreement with SFR Equities, which is owned by or an affiliate of the defendants. The agreement included SFR making payments to Warren Hill. 

The plaintiffs allege SFR failed to make the payments and then tried to hide "significant sums of money" by funneling it through "sham companies." After winning a judgment against SFR, Warren Hill claims SFR funneled more than $10 million to avoid paying the judgment. 

Warren Hill seeks trial by jury, monetary relief in excess of $150,000, and all other just relief. It is represented by Gregory Voshell and Thomas Helbig of Elliot Greenleaf PC in Blue Bell. 

U.S. District Court for the Eastern District of Pennsylvania case number 2:20-CV-00452

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