54314995 

UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA

WEST PALM BEACH DIVISION 

www.flsb.uscourts.gov 

In re: Case No.: 21-20416-MAM 

 Chapter 7 

CLIFFORD RYAN MORRIS, 

 Debtor. 

_________________________________ 

DEBORAH C. MENOTTE, Trustee in 

Bankruptcy for Clifford Ryan Morris, 

 Plaintiff. 

vs. Adv.Proc.No.: 

CLIFFORD RYAN MORRIS AND 

JUTTA K. MORRIS, 

Defendants. 

__________________________________/ 

TRUSTEE’S COMPLAINT TO AVOID AND RECOVER 

FRAUDULENT TRANSFERS PURSUANT TO 11 U.S.C. §§548 AND 550 

AND FLORIDA STATUTES §726, TO AVOID UNAUTHORIZED 

POST PETITION TRANSFERS AND FOR TURNOVER OF PROPERTY 

PURSUANT TO 11 U.S.C. §542(A)

The Plaintiff, Deborah C. Menotte, Trustee in Bankruptcy for Clifford Ryan Morris, 

(hereinafter referenced as "Trustee" or the “Plaintiff”) by and through undersigned counsel, hereby 

sues the Defendants, Clifford Ryan Morris and Jutta K. Morris (“Defendants” or “Mr. Morris” or 

“Ms. Morris”), and alleges: 

1. This is an adversary proceeding brought by the Plaintiff seeking to avoid and recover 

fraudulent and/or preferential transfers pursuant to 11 U.S.C. §§548 and 550, and §726, Florida 

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Statutes, to avoid unauthorized post petition transfers pursuant to 11 U.S.C. §549 and for Turnover 

Pursuant to 11 U.S.C. §542(a). 

2. This 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),(E) and (H). 

4. The venue of this proceeding is proper before this Court pursuant to 28 U.S.C. §1409. 

5. This action was commenced by the filing of a voluntary Chapter 7 bankruptcy 

petition for Clifford Ryan Morris (“Debtor”) on October 29, 2021. 

6. Deborah C. Menotte was appointed as the chapter 7 trustee for the estate of Clifford 

Ryan Morris. 

7. Defendant, Jutta Morris, has been the wife of the Debtor for all times relevant to this 

action, would qualify as an insider pursuant to 11 U.S.C. §101(31) and is otherwise subject to the 

jurisdiction of this Court. 

8. On or around March 25, 2021, the Debtor transferred funds from a Franchise 

Solutions bank account #4943 which was paid to him as a management fee in the amount of 

$45,000.00 into a joint Bank of America bank account under the name of both of the Defendants, 

being account #6455 (“Pre Petition Transfer”). From these funds, at least $8,500.00 was directly 

transferred to Ms. Morris on March 26, 2021 from the joint account #6455 pursuant to an online 

banking transfer. 

9. After the bankruptcy filing, on November 5, 2021, the Debtor transferred funds that 

were property of the estate in the amount of $15,000.00 into the same aforementioned Bank of 

America joint bank account in the name of both Defendants, being account #6455 (“Post Petition 

Transfer”) (both the Pre Petition Transfer and the Post Petition Transfer shall collectively be defined 

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as the “Transfers”). 

10. Such Transfers to the Defendants were for insufficient consideration as it relates to 

Ms. Morris and/or was a post petition transfer to both Defendants that was unauthorized by the Court 

or the Bankruptcy Code.. 

11. At the time of the Pre Petition Transfer, the Debtor was generally not paying his debts 

as they became due. 

12. At the time of the Pre Petition Transfer, pursuant to 11 U.S.C. §101(32) of the 

Bankruptcy Code, and as specifically defined therein, the Debtor was insolvent in that the sum of his 

debts was greater than the sum of his assets, or the Debtor was otherwise insolvent. 

13. All conditions precedent to the bringing of this adversary proceeding have been 

performed, waived, or excused. 

COUNT I – AVOIDANCE AND RECOVERY OF FRAUDULENT TRANSFER 

PURSUANT TO 11 U.S.C. § 548 

14. The Trustee re-alleges paragraphs 1 through 13 as if fully set forth herein. 

15. On or around March 25, 2022, Mr. Morris transferred $45,000.00 to Ms. Morris, 

which has been defined as the Pre Petition Transfer. 

16. The Pre Petition Transfer to Ms. Morris was a transfer made with the actual intent to 

hinder, delay, and/or defraud creditors pursuant to 11 U.S.C. § 548(a)(1). 

17. Further, pursuant to 11 U.S.C. §548(a)(2), the Debtor received less than a reasonably 

equivalent value in exchange for the Pre Petition Transfer and: 

(a) Was insolvent on the date that the transfer was made or became insolvent as a 

result of the transfer. 

(b) Was engaged in business or a transaction or was about to engage in business 

or a transaction for which any property remaining with the Debtor was an 

unreasonably small capital; or 

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(c) The Debtor intended to incur or believed that he would incur debts beyond 

his ability to pay as such debts matured. 

18. Ms. Morris was the initial transferee or the entity for whose benefit the Pre Petition 

Transfer was made whereby the Plaintiff is entitled to recover the Pre Petition Transfer pursuant to 

11 U.S.C. § 550(a)(1). Alternatively, Ms. Morris was the immediate or mediate transferee of the 

initial transferee for whose benefit the Pre Petition Transfer was made as a result, the Plaintiff is 

entitled to recover the Pre Petition Transfer pursuant to 11 U.S.C. §550(a)(2). 

WHEREFORE, the Plaintiff, Deborah C. Menotte, Trustee in Bankruptcy for Clifford Ryan 

Morris, by and through undersigned counsel, respectfully requests that the Court enter a judgment 

setting aside, avoiding and recovering the Pre Petition Transfer thus entering judgment against Ms. 

Morris in the amount of at least $8,500.00 up to $45,000.00, or such amount as the Court determines 

was transferred to her, plus that the Court award court costs and interest, plus such other and further 

relief as the Court deems just and proper. 

COUNT II – AVOIDANCE OF POST PETITION TRANSFER 

PURSUANT TO 11 U.S.C. §549 

19. The Trustee re-alleges paragraphs 1 through 13 as if fully set forth herein. 

20. This count is being pled as it relates to all transfers of funds orchestrated by the 

Defendants, either individually or jointly, which occurred post petition,. All such transfers were 

without the authority of the Bankruptcy Court and were not authorized by any provisions of the 

Bankruptcy Code. The Post Petition Transfer would constitute an unauthorized post-petition transfer 

pursuant to 11 U.S.C. §549, for which the Trustee reserves jurisdiction to seek any other post 

petition transfers of property of the estate that may have been received by the Defendants. 

21. After the bankruptcy filing, on November 5, 2021, the Debtor transferred funds that 

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were property of the estate in the amount of $15,000.00 into the Bank of America joint bank account 

under both of the Defendants’ names, being account #6455. 

22. The Post Petition Transfer was not authorized by the Bankruptcy Court. Such transfer 

is in violation of 11 U.S.C. §549 and should be avoided pursuant to such statute and pursuant to 11 

U.S.C. §550. 

23. The Defendants were the initial transferees or the entities for whose benefit the Post 

Petition Transfer was made whereby the Plaintiff is entitled to recover the Post Petition Transfer 

pursuant to 11 U.S.C. § 550(a)(1). Alternatively, the Defendants were the immediate or mediate 

transferees of the initial transferees for whose benefit the Post Petition Transfer was made, and, as a 

result, the Plaintiff is entitled to recover the Post Petition Transfer pursuant to 11 U.S.C. §550(a)(2). 

WHEREFORE, the Plaintiff, Deborah C. Menotte, Trustee in Bankruptcy for Clifford Ryan 

Morris, by and through undersigned counsel, respectfully requests that the Court enter judgment 

setting aside, avoiding and recovering the unauthorized .post-petition transfer of funds to the 

Defendants, thus entering judgment against both of the Defendants in the total amount of 

$15,000.00, plus that the Court award court costs, plus grant such other and further relief as the 

Court deems just and proper. 

COUNT III– AVOIDANCE AND RECOVERY OF FRAUDULENT TRANSFER 

PURSUANT TO § 726.105(1)(b), FLORIDA STATUTES 

24. The Trustee re-alleges paragraphs 1 through 13 as if fully set forth herein. 

25. Pursuant to 11 U.S.C. § 544(b), the Trustee may avoid any transfer of an interest of 

the Debtor in property that is voidable under applicable law by a creditor holding an unsecured claim 

that is allowable under §502 of this title or that is not allowable only under §502(e) of this title. 

26. Section 726.105(1)(b), Florida Statutes, provides: 

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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: without receiving reasonably equivalent in value in 

exchange for the transfer or obligation, and the debtor: 

 

(a) was engaged or was about to engage in a business or a 

transaction for which the remaining assets of the debtor were 

unreasonably small in relation to the business or transaction; or 

(b) intended to incur, or believed or reasonably should have 

believed that he would incur, debts beyond his ability to pay as they 

became due. 

27. More specifically, within two (2) years of the Debtor’s bankruptcy filing the Debtor 

transferred funds to the Defendant, Ms. Morris, totaling at least $8,500.00 up to $45,000.00 without 

the Debtor receiving reasonably equivalent value in exchange for the transfers pursuant to 

§726.105(1)(b), Florida Statutes. 

28. At the time of the Pre Petition Transfer, the Debtor was engaged or was about to 

engage in a business or a transaction for which the remaining assets of the Debtor were unreasonably 

small in relation to the business or transactions in which the Debtor was engaged. 

29. At the time of the Pre Petition Transfer, the Debtor had incurred debts beyond his 

ability to pay as they became due. 

30. As set forth above, the Debtor was otherwise insolvent at the time of the Pre Petition 

Transfer. 

31. As a result of the Pre Petition Transfer, the Trustee has been damaged pursuant to 11 

U.S.C. §544(b) for the total value of the Pre Petition Transfer. 

32. Ms. Morris was the initial transferee or the entity for whose benefit the Pre Petition 

Transfer in the amount of at least $8,500.00 up to $45,000.00 was made, and as a result, the Trustee, 

Deborah C. Menotte, is entitled to recover the Pre Petition Transfer totaling at least $8,500.00 up to 

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$45,000.00, pursuant to 11 U.S.C. §550(a)(1). Alternatively, Ms. Morris is the immediate or mediate 

transferee of the initial transferee for whose benefit the Pre Petition Transfer was made, and as a 

result, the Trustee is entitled to recover the Pre Petition Transfer as referenced above from Ms. 

Morris pursuant to 11 U.S.C. §550(a)(2). 

WHEREFORE, the Trustee, Deborah C. Menotte, Trustee in Bankruptcy for Clifford Ryan 

Morris, by and through undersigned counsel, respectfully requests that the Court enter a judgment 

setting aside and avoiding the transfer, thus entering judgment against Ms. Morris in the amount of 

at least $8,500.00 up to $45,000.00, or in such amounts determined at trial, and awarding court costs 

and interest, and such other and further relief as the Court deems just and proper. 

COUNT IV – AVOIDANCE AND RECOVERY OF FRAUDULENT TRANSFER 

PURSUANT TO SECTION 726.106(1), FLORIDA STATUTES 

33. The Trustee re-alleges paragraphs 1 through 13 as if fully set forth herein. 

34. Pursuant to 11 U.S.C. § 544(b), the Trustee may avoid any transfer of an interest of 

the Debtor in property or any obligation incurred by the Debtor that is voidable under applicable law 

by a creditor holding an unsecured claim that is allowable under §502 of Title 11 or that is not 

allowable only under §502(e) of this title. 

35. Section 726.106(1), Florida Statutes, provides: 

A transfer made or obligation incurred by a debtor is fraudulent as to a creditor 

whose claim arose before the transfer was made or the obligation was incurred if the 

debtor made the transfer or incurred the obligation without receiving a reasonably 

equivalent value in exchange for the transfer or obligation and the debtor was 

insolvent at that time or the debtor became insolvent as a result of the transfer or 

obligation. 

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36. The transfer to the Defendant Ms. Morris of funds totaling at least $8,500.00 up to 

$45,000.00 was made or incurred without the Debtor receiving reasonably equivalent value pursuant 

to §726.106(1), Florida Statutes. 

37. As set forth above, at the time of the Pre Petition Transfer to the Defendant Ms. 

Morris, the Debtor was insolvent or became insolvent as a result of the transfer. 

38. At the time of the Pre Petition Transfer, the Debtor was indebted to creditors in an 

amount in excess of the transfer. 

39. As a result of the Pre Petition Transfer, the Trustee has been damaged pursuant to 11 

U.S.C. § 544(b) for the total value of the transfer. 

40. The Defendant Ms. Morris was the initial transferee or the entity for whose benefit 

the Pre Petition Transfer in the amount of at least $8,500.00 up to $45,000.00 was made, and as a 

result, the Trustee, Deborah C. Menotte, is entitled to recover the Pre Petition Transfer totaling at 

least $8,500.00 up to $45,000.00, pursuant to 11 U.S.C. §550(a)(1). Alternatively, the Defendant is 

the immediate or mediate transferee of the initial transferee for whose benefit the Pre Petition 

Transfer was made, and as a result, the Trustee is entitled to recover the Pre Petition Transfer as 

referenced above from the Defendant pursuant to 11 U.S.C. §550(a)(2). 

WHEREFORE, the Trustee, Deborah C. Menotte, Trustee in Bankruptcy for Clifford Ryan 

Morris, by and through undersigned counsel, respectfully requests that the Court enter a judgment 

setting aside and avoiding the fraudulent transfer, thus entering judgment against the Defendant in 

the amount of at least $8,500.00 up to $45,000.00, or in such amounts determined at trial, and 

awarding court costs and interest, and such other and further relief as the Court deems just and 

proper. 

COUNT V - RECOVERY OF AVOIDED TRANSFERS PURSUANT TO 11 U.S.C. §550

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41. The Plaintiff realleges paragraphs 1 through 13 as if fully set forth herein. 

42. This count is pled as an effectuating count whereby to whatever extent the Court 

deems it necessary for the Plaintiff to specifically seek to recover any avoided transfer pursuant to a 

separately pled count, this count is being separately pled. 

43. Upon the Court setting aside and avoiding the transfers referenced in the preceding 

counts, for any amount either more or less than $60,000.00, the Plaintiff seeks to recover such 

transfers pursuant to 11 U.S.C. §550. 

WHEREFORE, the Plaintiff, Deborah C. Menotte, as Trustee in Bankruptcy for Clifford 

Ryan Morris, by and through undersigned counsel, respectfully requests that the Court enter 

judgment that the Defendants, jointly and severally, were the initial transferees for whose benefit the 

transfers referenced above in the amount of $60,000.00, were made, and as a result, the Plaintiff is 

entitled to recover the transfers from the Defendants pursuant to 11 U.S.C. §550(a)(1) or 

alternatively, that the Court enter judgment finding that the Defendants are the immediate or 

mediate transferees of the initial transferee for whose benefit the transfers were made, and as a 

result, the Plaintiff is entitled to recover the transfers as referenced above from the Defendants 

pursuant to 11 U.S.C. §550(a)(2). 

COUNT V TURNOVER OF PROPERTY PURSUANT

TO 11 U.S.C. §§ 542(a) 

44. The Trustee realleges paragraphs 1 through 13 as if fully set forth herein. 

45. After the bankruptcy filing, on November 5, 2021, the Debtor transferred funds that 

were property of the estate in the amount of $15,000.00 into a Bank of America joint bank account 

in the name of both Defendants, being account #6455. 

47. Such funds in the amount of $15,000.00 are property of the estate pursuant to 11 

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U.S.C.§541 that should be turned over pursuant to 11 U.S.C. §542(a). 

48. Pursuant to 11 U.S.C. §542(a), an entity in possession, custody or control during 

the case of property that the Trustee may use, sell or lease under §363 of this title, shall deliver to 

the Trustee, and account for, such property or the value of such property. 

WHEREFORE, the Plaintiff, Deborah C. Menotte, Trustee in Bankruptcy for Clifford Ryan 

Morris, by and through undersigned counsel, respectfully requests that the Court enter judgment 

against both Defendants, jointly and severally, requiring turnover in the total amount of $15,000.00, 

plus that the Court award court costs, plus grant 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: June 23, 2023 Respectfully Submitted, 

GREENSPOON MARDER, LLP 

/s/ Michael R. Bakst 

MICHAEL R. BAKST, ESQ. 

Florida Bar No.: 866377 

Attorneys for Trustee 

CityPlace Tower 

525 Okeechobee Blvd., Suite 900 

West Palm Beach, FL 33401 

T: (561) 838-4523 

Email: michael.bakst@gmlaw.com

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