U.S. Tr. v. Ellis (In re Ellis)

Christopher M. Alston, U.S. Bankruptcy Judge

The Court conducted a bench trial in this adversary proceeding on April 24, 25, and 27, 2018. Martin L. Smith and Sarah R. Flynn represented the Office of the United States Trustee (the "Plaintiff" or the "U.S. Trustee"). Donald A. Bailey represented Defendant Alanna G. Ellis ("Alanna"1 ). The Court heard closing arguments on May 2, 2018, and then took the matter under advisement.

At trial, the U.S. Trustee asserted that during the chapter 11 case Alanna secretly diverted post-petition mortgage services income that was property of the bankruptcy…