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1 along with the Debtor. In the Colafrancesco's view, in this case the Debtor has a number <br /> 2 of claims against Karyn Litchfield in the nature of fraud, fraudulent transfer, breach of <br /> 3 fiduciary duty, and possibly alter ego, and thus there are actual present conflicts, as <br /> 4 opposed to potential or probable conflicts, in Mr. McKinley's joint representation of the <br /> 5 Debtor and Ms. Litchfield. The Colafrancescos have notified the Debtor that they object to <br /> 6 Mr. McKinley's joint representation, but the Debtor has persisted. <br /> 7 21. The Debtor's failure to disclose its counsel's conflict of interest is further <br /> 8 evidence that, not only before bankruptcy, but continuing after the filing of the bankruptcy <br /> 9 and in front of this court, the Debtor continues to operate improperly and for the benefit of <br /> 10 insiders at the expense of the estate and its creditors. <br /> CONCLUSION <br /> 11 <br /> The Debtor's has in numerous substantial respects failed to properly or timely <br /> 12 <br /> report its assets and financial activity. The Debtor continues to operate at a substantial <br /> 13 loss. The Debtor is, at best, grossly mismanaged. The court should appoint a chapter 11 <br /> 14 trustee to oversee the operation and liquidation of this estate. <br /> 15 <br /> 16 Dated: April 22, 2009 PARKINSON PHINNEY <br /> 17 By: /s/Thomas R. Phinney <br /> 18 Thomas R. Phinney, Counsel for <br /> Susan Colafrancesco and James Colafrancesco <br /> 19 <br /> 20 <br /> 21 <br /> 22 <br /> 23 <br /> 24 <br /> 25 <br /> 26 <br /> 27 <br /> 28 <br /> 128/00001 ffRP/A0075902.DOC 1 <br /> 7 <br />