Overview
- The court-appointed trustee alleges Sanders made unauthorized transfers of roughly $250,000 tied to NIL revenue, potentially violating bankruptcy rules.
- Attorney Keri Riley asked the court to dismiss the complaint, arguing the funds were post-petition earnings routed through Big 21 LLC and Headache Gang LLC that are not estate property.
- A judge must decide whether the trustee has pleaded a viable claim; dismissal would end the recovery effort, while denial could send the dispute toward trial.
- The Chapter 7 case traces back to an $11.89 million default judgment from 2022 tied to a 2015 incident involving security guard John Darjean, with separate filings seeking to block discharge of that debt.
- A related suit by Barnes & Thornburg seeks about $164,000 in unpaid legal fees, and the broader bankruptcy proceedings remain active.