UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

FT. LAUDERDALE DIVISION

www.flsb.uscourts.gov

In re:

FRANCISCO M. JIMENEZ,

Debtor.

/

Case No.: 17-20926-SMG

Chapter 7

SUSAN JOHNSON and Adv. Case No.: 

STEVEN JOHNSON, 

Plaintiffs/Judgment Creditors,

v.

BRENDA LOVATO a/k/a

BRENDA DE LA CRUZ,

Defendant.

_____________________________________/

COMPLAINT OF PLAINTIFFS/JUDGMENT CREDITORS

SUSAN JOHNSON AND STEVEN JOHNSON TO AVOID AND TO RECOVER 

ACTUAL FRAUDULENT TRANSFER

The Plaintiffs/Judgment Creditors Susan Johnson and Steven Johnson (collectively, the 

“Johnsons”), through undersigned counsel, and pursuant to Fla. Stat. § 726.105(1)(a), sue the 

Defendant Brenda Lovato a/k/a Brenda de la Cruz (“de la Cruz”) to recover an actual fraudulent 

transfer, and allege:

1. The Johnsons are husband and wife who bring this adversary proceeding seeking 

to avoid and to recover an actual fraudulent transfer of the Debtor/Judgment Debtor Francisco 

Jimenez (the “Debtor”) to de la Cruz pursuant to Fla. Stat. § 726.105(1)(a). The Johnsons hold a 

non-dischargeable final money judgment entered by this Court in their favor and against the Debtor

in Adv. Case No. 18-01101-SMG.

2. The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 

1334(b).

3. This is a core proceeding for which the Court is authorized to hear and determine 

all matters regarding this case in accordance with 28 U.S.C. § 157(b)(2)(A) and (H).

Case 21-01029-SMG Doc 1 Filed 01/28/21 Page 1 of 5
2

4. On August 29, 2017 (the “Petition Date”), the Debtor filed his chapter 7 

bankruptcy. 

5. Susan Johnson was the caregiver for her ailing mother for many years. In 2004,

Susan Johnson’s mother passed away, upon which Susan Johnson received a substantial 

inheritance of real estate and funds which she wished to invest to start new business ventures. 

Much of the real estate and other assets Susan Johnson inherited from her mother were located in 

Martin County, Florida, even though Susan Johnson lived in Connecticut.

6. In 2005, Susan Johnson met the Debtor who represented himself to her as someone 

who could assist her with developing new business ventures. The Debtor represented to Susan 

Johnson that he had extensive marketing experience and many good business ideas. During their

initial meetings, the Debtor represented that he had held high-level positions with Spaulding, 

Bausch and Lomb, Nike, and AT&T, with significant experience opening, marketing, and 

operating new businesses for profit. Susan Johnson began to trust the Debtor and believed he 

could help invest her inheritance money in new business ventures. 

7. Susan Johnson thereafter became friendly with both the Debtor and his girlfriend, 

Ericka Lovato (“Lovato”). Susan Johnson quickly grew to trust them and treat them like family. 

In late 2005 or early 2006, the Debtor and Lovato moved into Susan Johnson’s vacant townhome 

in Hobe Sound, where the two, and later their baby, would live for the next 10 years, until the fall 

of 2015. At no time did the Debtor or Lovato ever pay Susan Johnson any rent.

8. Based on what the Debtor had told Susan Johnson about his business experience 

and their mutual trust, Susan Johnson began transferring substantial sums to various business 

ventures with the Debtor and Lovato, all of which were operated by them in Florida. In each of 

these businesses, the Debtor and Lovato owned part of the business, and Susan Johnson was the 

other owner. Susan Johnson always provided all the necessary funds for the business to open and 

to operate, while the Debtor and Lovato purportedly contributed “sweat equity.” No written 

agreements were ever prepared. 

9. The first of these business ventures was Copella which was a digital magazine for 

women featuring jewelry and key ring accessories. The next was Modus Media Works, Inc. which 

developed digital signage and rolling displays. When Modus Media Works, Inc. was operating, 

the Debtor began accessing Susan Johnson’s credit line at Chase Bank. Both of the Johnsons made 

payments on Susan Johnson’s credit line at Chase Bank.

Case 21-01029-SMG Doc 1 Filed 01/28/21 Page 2 of 5
3

10. Modus Media Works, Inc. was formed on April 5, 2006 and operated until some 

time in 2009. During its operations, the Debtor removed more than $100,000 from Susan 

Johnson’s line of credit, ostensibly to fund Modus Media Works, Inc.

11. Between 2005 and 2010, none of these businesses was ever profitable, including 

Modus Media Works, Inc. No return of any kind was ever provided to Susan Johnson. Susan 

Johnson lost all of her investment in each venture. 

12. As it turned out, the Johnsons later uncovered that the Debtor was taking the funds 

from Susan Johnson’s credit line for himself. The Debtor had never intended any of the various 

business ventures he undertook with Susan Johnson, and later with Steven Johnson as well, to 

become viable businesses. The creation of these business and the Johnsons’ funding of them was 

a ruse for the Debtor to con the Johnsons out of their money for himself and Lovato. None of the 

representations that the Debtor made to Susan Johnson about his experience were true. The Debtor 

is a hardened con artist who set out to steal money from the Johnsons from the outset.

13. The Debtor never had any money or funds. The Debtor always had a negative net 

worth and has been continuously on food stamps and other public assistance since 2005. The 

Debtor’s taking of funds from the Johnsons began in 2005.

14. The Johnsons timely filed their adversary proceeding against the Debtor to deny 

the dischargeability of the Debtor’s obligations to the Johnsons under 11 U.S.C. §§ 523(a)(2)(A), 

523(a)(4), and 523(a)(6), and to liquidate that non-dischargeable obligation to a final money 

judgment in Adv. Case No. 18-01101-SMG. The Debtor fully defended the non-dischargeability 

action through counsel. After full discovery, briefing, and argument, the Court entered a summary 

final judgment against the Debtor on all three counts, and entered a federal non-dischargeable 

money judgment against the Debtor in favor of Susan Johnson for $360,526.00 and in favor Steven 

Johnson for $759,067.14. on March 4, 2019 [ECF 60, Case No. 18-01101-SMG]. The judgment 

remains unsatisfied.

15. In connection with the Johnsons’ attempts to recover their judgments and 

investigation of the financial dealings of the Debtor in 2019, the Johnsons very recently discovered 

that in 2007, the Debtor took more than $20,000 in funds from Susan Johnson’s line of credit for 

himself. After taking those funds for himself and owning and holding them, the Debtor then 

transferred $19,831.70 to de la Cruz for de la Cruz to satisfy a mortgage (the “Mortgage”) on a 

house located at 1833 Henry Circle SW, Albuquerque, New Mexico (“1833 Henry Circle”).

Case 21-01029-SMG Doc 1 Filed 01/28/21 Page 3 of 5
4

16. The mortgagors under the Mortgage were de la Cruz and Lovato. De la Cruz is 

Lovato’s mother. On May 15, 2001, de la Cruz issued a Quitclaim Deed for 1833 Henry Circle 

from herself to herself and Lovato in connection with which they obtained the Mortgage. On 

October 10, 2016, Lovato executed a Quitclaim Deed in which she transferred her interest in 1833 

Henry Circle back to de la Cruz. On or about December 25, 2007, the Debtor transferred 

$19,831.70 (the “Transfer”) to or for benefit of de la Cruz to satisfy the Mortgage. The Mortgage 

was satisfied. 

17. The Transfer was a transfer of an interest in property of the Debtor. 

18. The Debtor made the Transfer to or for the benefit of insiders, his girlfriend Lovato 

who was still obligated on the Mortgage, and to de la Cruz, who is his girlfriend’s mother. The 

Debtor concealed the Transfer, telling Susan Johnson the sums taken from her credit line were for 

Modus Media Works, Inc., when in fact they were for his own purposes such as to satisfy the 

Mortgage. When the Debtor made the Transfer, the Debtor was two years into a ten-year plus 

scheme of conning the Johnsons out of almost a million dollars. The Debtor was at the time of the 

Transfer obligated to Susan Johnson for at least $150,000. De la Cruz still owns 1833 Henry 

Circle. The Debtor received nothing in return for satisfying the Mortgage. The Debtor purported 

to be and was with little assets during the times when he made the Transfers and was accordingly 

insolvent. The Debtor is on active felony probation in Indian River County, Florida for forging 

Susan Johnson’s signature on a liquor license application for one of their businesses.

19. On August 1, 2019, the Court entered its Order Granting Motion for Proceedings 

Supplementary [ECF 179 in Case No. 18-01101-SMG].

COUNT I – AVOIDANCE AND RECOVERY OF

ACTUAL FRAUDULENT TRANSFERS FLA STAT. § 726.105(1)(a)

20. The Johnsons bring Count I to avoid and to recover the Transfer as actual fraudulent 

transfers under Fla. Stat. § 726.105(1)(a).

21. Fla. Stat. § 726.105(1)(a) (“Transfers fraudulent as to present and future creditors”) 

provides: “(1) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, 

whether the creditor’s claim arose before or after the transfer was made or the obligation was 

incurred, if the debtor made the transfer or incurred the obligation: (a) With actual intent to hinder, 

delay, or defraud any creditor of the debtor[.]”

Case 21-01029-SMG Doc 1 Filed 01/28/21 Page 4 of 5
5

22. Fla. Stat. § 726.110(1) provides that a cause of action under § 726.105(1)(a) expires 

within one year after the transfer was discovered or could have reasonably been discovered by the 

claimant, if not brought within 4 years of the transfers.

23. The Debtor made the Transfer to or for the benefit of de la Cruz with the intent to 

hinder, delay, or defraud the Johnsons. The Transfer was concealed and not could not have 

reasonably been discovered by the Johnsons absent extensive financial and other investigation 

which has just recently undercovered it. The Johnsons brought this action to recover the Transfer 

within a year of when it was discovered or reasonably could have been discovered. 

24. De la Cruz received the Transfer or the benefit of the Transfer fully aware that 

Lovato’s boyfriend, the Debtor, made it with funds taken from Susan Johnson. 

25. The Johnsons are entitled to set aside and to avoid the Transfer and to obtain the 

value of the Transfer from de la Cruz in the form of a final money judgment.

WHEREFORE the Plaintiffs Susan Johnson and Steven Johnson pray this Honorable Court 

will enter a judgment in their favor and against Brenda Lovato a/k/a Brenda de la Cruz setting 

aside and avoiding the Transfer, entering judgment in the Johnsons’ favor and against de la Cruz

for $19,831.70, and awarding court costs and interest, and such other and further relief as the Court 

deems just and proper.

I HEREBY CERTIFY that I am admitted to the Bar of the United States District Court 

for the Southern District of Florida, and that I am in compliance with the additional qualifications 

to practice in this Court set forth in Local Rule 2090-1(A).

Dated this 28th day of January, 2021.

FENDER, BOLLING, AND PAIVA, P.A.

/s/ G. Steven Fender

G. STEVEN FENDER, ESQ.

Florida Bar No. 060992

Attorney for Susan and Steven Johnson

P.O. Box 1545

Ft. Lauderdale, FL 33302

Telephone: (407) 810-2458

Email: steven.fender@fender-law.com

Case 21-01029-SMG Doc 1 Filed 01/28/21 Page 5 of 5