JUSTICE FOR LEAF MASKS PURCHASERS

May 5, 2023

This case received national attention due to the large number of customers who claimed they were defrauded during the COVID-19 pandemic. OSBIG, as counsel for the bankruptcy estate, filed a complaint that alleged:

  1. Prior to its bankruptcy filing, the Debtor raised almost seven million dollars on a crowdfunding platform and its own website for facemasks that purportedly protected against COVID-19.
  2. Problems arose when the customers complained that the masks were defective or were never delivered, which resulted in the Debtor company being terminated from the crowdfunding platform, from Amazon, and its credit card processor.
  3. By the time the Debtor filed for bankruptcy, almost all of the funds were gone.

The bankruptcy trustee brought an avoidance action to avoid the alleged fraudulent transfers from the Debtor company to or for the benefit of the Debtor’s principal, to the principal’s shell companies, and to associates of the principal. OSBIG successfully secured a settlement of $400,000.00 from the Defendants, providing a sense of justice for the defrauded purchasers.

In re Redcliffe Medical Devices, Inc.: Bankruptcy Trustee v Kumar, et al. Case #22-4310.
Opposing counsel Schafer & Weiner PLLC.