Receiver sues Alfaro’s wife to seize property
The court-appointed receiver overseeing embattled San Antonio oil and gas businessman Brian Alfaro’s property has sued Alfaro’s wife to recover assets alleged to have been fraudulently transferred to her.
Receiver J. Scott Rose wants to set aside the various property transfers, which he said happened after some investors defrauded by Brian Alfaro sought to collect on an $8 million court judgment.
Tuesday’s lawsuit against Kristi Alfaro and her company, Synergy E&P, follows a December court hearing where U.S. Bankruptcy Judge Craig Gargotta expressed concern that Brian Alfaro might be trying to evade payment of the judgment.
Rose alleges the property fraudulently transferred to Kristy Alfaro and Synergy was either owned or controlled by Brian Alfaro.
“I was disappointed to learn that Mr. Rose brought my company into this litigation,” Kristi Alfaro said in an email. “Synergy has worked with Silver Star Resources under a contractual relationship. I am offended by the accusation that my company has engaged in fraudulent conduct.”
Brian Alfaro had no comment on the lawsuit. “That’s her company, not mine, so I don’t know what I can say about it,” he said.
Gargotta issued the $8 million judgment in late 2017 after holding a trial on 28 investors’ allegations that Brian Alfaro operated a Ponzi scheme and used their money to buy multimillion-dollar estates ande exotic sports cars. The judge awarded nine of the investors
WASHINGTON — Delta Air Lines can’t get eight new aircraft in the air. Roughly a million government employees and contractors aren’t being paid. Some Americans who are trying to start small businesses face delays in obtaining the required tax identification number from the IRS.
As the partial government shutdown moves through its fourth week with no end in sight, the economic blow is being felt not only by federal workers but also by business people, households and travelers across the country. And while the hit to the overall economy so far remains slight, economist foresee real damage if the shutdown drags into February or beyond.
“Even if the shutdown is over by the end of the month, the hit to growth will be material,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a research note.
Shepherdson projects that after growing for nearly 10 years, the economy might even contract in this year’s first quarter if the shutdown lasts through March. Other forecasts are less dire. Mark Zandi, chief economist at Moody’s Analytics, thinks that if the shutdown extends that long, the economy would slow by 0.5 percentage point but would remain on solid footing.
On Tuesday, Kevin Hassett, a top economist in the White House, acknowledged that the shutdown was weighing on the economy more than he had previously estimated. Hassett, chairman of the Council of Economic Advisers, said the
$8 million. Brian Alfaro is appealing the judgment.
The investors’ lawsuit later became the basis of a criminal case against Brian Alfaro, who is charged with eight counts of mail fraud. He faces up to 20 years in prison and a fine of up to $250,000 on each count if found guilty. He has pleaded not guilty.
In November, before Brian Alfaro’s indictment, U.S. marshals descended on his Shavano Park estate and seized a 2018 Ferrari 488, a 2017 Mercedes-Benz AMG GT S, two dozen watches, jewelry, clothes and other items as part of the investors’ efforts to collect on the judgment.
The Alfaro attempted to get the property back. Gargotta appointed Rose as receiver to oversee Brian Alfaro’s property not exempt from seizure.
Rose, in his lawsuit, alleges that the Alfaros entered into a postnuptial agreement and a partition agreement to make what was considered “community property,” which Brian Alfaro would have an interest in, into separate property of Kristi Alfaro.
A financial statement attached to the post-nuptial agreement shows Kristi Alfaro’s assets include real estate in Boerne, a Wells Fargo bank account, a 2017 Cadillac Escalade and 2018 Ford F-150 Raptor, and full ownership of Synergy E&P. She reported no income.
Brian Alfaro listed two Mercedes vehicles and 100 percent ownership in Silver Star Resources as assets. He reported income of $1.5 million. The Alfaros both listed as debt the mortgage on their Shavano Park estate.
“The Postnuptial Agreement does not provide any evidence to establish the bona fides (legitimacy) of the separate-property designations,” Rose said in the lawsuit against Kristi Alfaro.
Rose questioned a roughly $235,000 payment by Silver Star to Synergy on Nov. 16 for a working interest in a Louisiana well. The total price was $400,000. Silver Star “received less than equivalent value” from Synergy, Rose alleges. Silver Star was insolvent, or became insolvent as a result of the transaction, he adds.
Rose also took issue with two condominium units that Synery acquired in San Antonio’s Dominion Place Condos for about $800,000 in August. Rose alleges that either Brian or Kristi Alfaro sold property subject to the receivership order to acquire the units.
Brian or Kristi Alfaro made the transfers “with actual intent to hinder, delay, or defraud any creditor of Brian Alfaro or to delay the Receiver to or for the benefit of Defendant Kristi Alfaro,” Rose alleges in the suit.
Rose wants the bankruptcy judge to unwind the transactions.
Meanwhile, in another court filing this week, Rose says the Alfaros have not fully complied with a court order directing them to turn over various documents to the receiver.
Gargotta held the couple in contempt of court last month for failing to turn over the documents. The contempt order was meant to get them to comply with a previous order to turn over the documents.
Among the documents they are required to turn over are tax records, bank and investment account statements, financial statements, company records and title documents.
“I have given hundreds and hundreds of documents to the receiver and it never seems to be enough,” Brian Alfaro said. “It’s like a bottomless hole. But It is my intention to be in full compliance. It always has been. I don’t know what more I can do.”