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Couple files for Chapter 7 protection
WILLINGHAMS: Oxnard berry grower-brokers list more than 500 names of creditors in filing.
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More from Other NewsIn bankruptcy papers filed Thursday, the Willinghams list assets of $1.06 million in real and personal property, and liabilities of $23.182 million. The list of creditors includes more than 500 names of individuals or businesses.
The Willinghams, who in earlier court documents have denied defrauding investors, face nearly three dozen civil suits in Ventura and Santa Barbara counties involving millions of dollars of investments in Willingham Farms and Sunshine Fresh Produce.
Plaintiffs in some of the civil cases have accused the couple of running a Ponzi scheme in which the money of later investors was used to pay off earlier investors. Both the Willinghams and their attorney, who not could be reached for comment Monday, have denied these charges.
In responses to the suits, both Willinghams have blamed their inability to pay back some investors on successive years of poor weather and other market conditions. They also question the accuracy of some claims about how much money is owed.
In a Chapter 7 bankruptcy, debtors ask the court to erase their debts. In exchange, they often are required to give up certain types of property, which is sold to pay creditors on a pro-rata basis.
The court can decide not to erase some or all of the debts if it is determined that they were incurred fraudulently, as plaintiffs in many of the Willinghams' civil cases charge. The Willinghams have denied committing fraud in their business dealings.
-- Deborah Crowe's e-mail address is dcrowe@insidevc.com.
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