In Re Hil'Crest Apartments

MEMORANDUM AND ORDER

ROBERT L. EISEN, Bankruptcy Judge.

This matter was heard on the motion of the United States of America, on behalf of the United States Department of Housing and Urban Development (HUD), to compel the debtor, Hil’Crest Apartments, to restore allegedly improperly diverted funds to the estate. For reasons set forth in the memorandum, this Court, having carefully considered all pleadings, memoranda and documentary evidence, does find that the $5,200 paid to the debtor’s bankruptcy attorneys were improperly diverted from Hil’Crest’s operating account and must be restored.

BACKGROU…