Banks, Homebuyer, Bankruptcy Trustee Accuse Idaho Homebuilder Of Fraud, Misuse Of Construction Funds, Hiding Assets In Civil Case

In Eagle, Idaho, the Idaho Statesman reports:

• Meridian homebuilder Justin Walker, who abandoned an unfinished subdivision in Eagle, is accused of fraud, misuse of construction funds and hiding assets in his bankruptcy case. Aaron Hymas, Walker's former partner in the defunct Crestwood Construction Inc., faces several lawsuits alleging fraud too.

• In April, Justin and Jackie Walker and Aaron and Tiffany Hymas filed for Chapter 7 bankruptcy. That allows all properties and belongings - except those the families are allowed to keep by the court - to be liquidated to pay as many creditors as possible. Both cases list many of the same 800-plus creditors and about $69 million in liabilities.

• Three banks and a homebuyer asked the Bankruptcy Court in Boise last week to rule that certain debts should not be discharged in the bankruptcies because of "false pretenses, false representation and actual fraud."

• And Jeremy Gugino, the bankruptcy trustee in Walkers' case, alleges the Walkers transferred $30,000 in cash, about 22 vehicles and other assets to limited liability companies in Nevada and a trust to hide them from creditors.

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• [H]undreds of subcontractors, including painters, house cleaners and suppliers of everything from trash service to building supplies, likely will have to absorb about $11 million in unsecured debt, bankruptcy experts say.

For more, see Meridian builders accused of fraud (Complaints say Justin Walker and his partner misused construction funds and Walker has hidden assets from the Bankruptcy Court).