Background on Donald Kasdon T1Payments Bankruptcy:
Donald Kasdon T1Payments, LLC has filed a preliminary request for bankruptcy, sometimes referred to as a ‘skeleton’ voluntary petition. Additional records unveiled the financial condition of the organization, encompassing its financial resources and obligations.
Another of the noteworthy items in question was a 2019 Porsche Turbo S automobile, which had an original valuation of $175,000 but was subsequently revised to $127,000. The overall valuation of the business’s assets was revised, resulting in a decrease between $560,183.65 to $512,183.65.
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The application to amend the automatic stay, filed by New U Life Corporation (NULC), a merchant & creditor, seeks permission to move forward with a case involving Donald Kasdon T1Payments without executing a judgment against it.
The legal dispute originated and revolves around the National University Law Center’s (NULC) assertion of a federal complaint against Donald Kasdon T1Payments, alleging fraudulent activities and misappropriation of money related to the processing of payments.
The motion encountered opposition from various individuals, including the trustee who is responsible for managing the insolvency proceedings of T1 Payment.
The contention put forth was that the pursuit of legal action towards Donald Kasdon’s T1 payments would be deemed unsuitable and superfluous, given that the complaint made by NULC was already authorized through the insolvency proceedings.
Court’s Deliberation and Ruling:
During the court hearings, several significant matters were deliberated, which can be enumerated as follows:
The request for relief from stay about Donald Kasdon T1Payments:
The rationale behind NULC’s request for release from an automatic stay was twofold: firstly, to secure an outcome toward Donald Kasdon T1Payments, as well as secondly, to proceed with its counterclaim toward parties not involved in the bankruptcy proceedings.
Nevertheless, the judge determined that there were no justifiable grounds to provide a legal remedy, as the claim put up by NULC had previously been considered permissible, rendering the continuation of the litigation unnecessary.
Relief from Stay against Non-Debtors:
The concept of relief from stay despite non-debtors refers to the legal process by which a party seeks permission from a court to take action versus individuals or entities who are not directly responsible for a debt in a bankruptcy case.
The judge provided clarification regarding the scope of the automatic stay, specifying that it exclusively pertains to the insolvency debtor, their possessions, as well as assets belonging to the bankruptcy estate as a whole.
Consequently, the aforementioned stay does not extend to the separate claims brought by NULC against individuals not involved in the debtor’s proceedings, thereby rendering any form of remedy superfluous.
The concept of comfort order refers to the arrangement or organization of items or elements in a manner that promotes a sense of ease, and relaxation
The National University Law Center (NULC) made a formal request for a “comfort order” following Section 362(j) of the relevant legislation. This request sought confirmation that NULC had the legal authority to pursue legal action against defendants who were not debtors in the case.
Nevertheless, the court determined that Section 362(j) was not relevant in this particular situation, resulting in the denial of the request for comfort relief.
The petition filed by NULC to change the stay for implementation solely for judgment, in addition to its request for a comforting order, has been denied by the court of reviews. The verdict reinforces the importance of the bankruptcy process by obviating the necessity for further litigation concerning the same matter after the acknowledgment and approval of a claim inside the framework of a bankruptcy.
The significance of the insolvency process in resolving claims about a bankrupt firm within the confines of the procedure itself, rather than pursuing external litigation, is highlighted by the court’s ruling.
The High-Risk Payment Saga has put Donald Kasdon T1Payments
Donald Kasdon T1Payments has garnered a bad reputation due to allegations of withholding merchant cash under questionable circumstances, followed by subsequent disappearance.
The company’s contentious trajectory ultimately resulted in the filing of insolvency in the United States, prompting Kasdon to redirect his attention towards a new enterprise, Pixxles, which is headquartered in the United Kingdom.
Donald Kasdon T1Payments has been subject to allegations of fraudulent activities by multiple American merchants, who have specifically implicated key individuals associated with the company, namely Donald Kasdon, Debra Karen King (also known as Debra Karen Kaisen), & Amber Fairchild.
Merchants frequently express dissatisfaction with the abrupt closure of their bank accounts and the retention of money, attributing these actions to unforeseen elevated risks.
Donald Kasdon T1Payments asserts that these measures are essential safeguards aimed at mitigating the risks associated with refunds and other penalties.
Nevertheless, certain retailers claim that the payments that are held back are rarely delivered, prompting a few of them to commence legal actions based on allegations of fraudulent behavior.
T1 Payments LLC has disclosed in its petition for bankruptcy that it is at present dealing with ten legal actions in the states of Nevada & California, as evidenced by the accompanying screenshot.
The corporation has seen a significant influx of grievances from its clientele, leading to its compelled initiation of bankruptcy proceedings in the state of Nevada during the initial months. Nevertheless, the bankruptcy processes have presented considerable challenges, as multiple creditors assert their claims for repayment.
This bankruptcy action has impacted around 1,500 creditors, primarily consisting of former clients of T1 Payments. Several companies have had significant financial losses.
For instance, New U Life Corporation incurred a loss of more than $5.2 million, Hyper Sls Ltd suffered a loss of approximately $350,000, G Com Pte Ltd experienced a loss of $231,000, and D.N.G FZE incurred a loss of $225,000.
The business has had substantial financial losses as a result of fund theft, with Donald Kasdon being held responsible for orchestrating the scheme. Kasdon has said that his mother was involved in embezzling a considerable sum from the funds of the business.
The Challenges Faced by Pixxles in the United Kingdom
Donald Kasdon T1Payments has extended its market presence to the United Kingdom through its connections with T1 Payments Ltd & TGlobal Services Ltd.
T1 Payments Ltd was deregistered from the Companies House registry, whereas TGlobal Services Ltd successfully circumvented a comparable outcome using
Pixxles Ltd was formed by Amber Fairchild, an earlier director at TGlobal Services Ltd.
The company obtained recognition from the Financial Conduct Authority (FCA) as an E-Money Institution, denoted by reference number 927960. Subsequently, the company has had notable financial transactions. The source of these monies remains unclear, however, it is apparent that Pixxles is grappling with increasing financial losses.
Based on the most recent submission to the Companies House, Pixxles disclosed a financial loss of over GBP 1.1 million, which represents a notable escalation compared to the preceding year’s shortfall of GBP 954,463.
Notwithstanding receiving a significant infusion of money amounting to GBP 3.5 million, the company has incurred losses exceeding GBP 3 million. Additionally, it is worth noting that Amber Fairchild has financial connections with Pixxles, which have resulted in significant remaining debts.
However, it is important to highlight that these debts have been lowered to a slightly higher amount, specifically just around GBP 165,000.
Donald Kasdon T1Payments is a payment processor that operates in high-risk sectors such as porn, online gambling, casinos, and drugs, which have led to reports of money laundering. Despite the departure of its co-founders, Payvision continues to support transnational criminal organizations.
T1 Payments is attempting to avoid lawsuits in the U.S. and is considering filing for Chapter 7 bankruptcy as a possible solution. Meanwhile, in the U.K., Pixxles, an e-money institution, has taken over from T1 Payments. It is run by Amber Fairchild, the former fiancee of Donald Kasdon. You know more about him, you may learn from the link: Donald Kasdon T1Payments.