Charles Littleton Sessoms IV, a Hudson Valley beverage company executive, must not be allowed to elude $4.7 million in debts because he misrepresented his finances in bankruptcy court, according to a lawsuit.
Drink Up LLC, a Minnesota beverage company that loaned $3 million to a company run by Sessoms, sued him Feb. 1 in U.S. Bankruptcy Court, Poughkeepsie, to stop him from discharging the debt.
Drink Up accuses Sessoms of filing false paperwork in a Chapter 7 liquidation case and lying under oath about his assets at a creditors”™ hearing and at a court-ordered examination.
Sessoms did not immediately respond to a request for his side of the story, submitted to his bankruptcy attorney.
In 2016, Drink Up began loaning money to Nexbev Industries, based at Sessoms”™ home in Highland Mills, Orange County. Sessoms, the president and majority owner, guaranteed the loans.
Drink Up says it loaned the money having relied on statements by Nexbev that turned out to be false.
Nexbev allegedly claimed that it had operations in Manhattan and Westchester and Orange counties; it had distribution deals with the military, hospitals, New York City public schools and 30,000 stores; and it was becoming the leading force in the ultra-premium water beverage category.
A confidential business summary projected gross sales of $177 million and a net profit of $96.2 million for the year from July 2016 through June 2017. Actual revenue on tax returns for all of 2016 and 2017, according to the complaint, totaled $5,311.
Sessoms petitioned bankruptcy court last June for Chapter 7 liquidation, declaring $190,000 in assets ”“ consisting mostly of half-interest in his house ”“ and $3.8 million in liabilities. Drink Up, of White Bear Lake, Minnesota, is listed as an unsecured creditor owed $3 million.
Drink Up has filed a claim for more than $4.7 million, including interest and legal fees.
Chapter 7 bankruptcy allows debtors to be released from certain debts. But there are exceptions. The court may deny discharge of debts, for instance, if it finds that the debtor knowingly and fraudulently misrepresented assets.
Drink Up claims that Sessoms did not disclose a $186,506 pension from Coca Cola, a joint bank account with his wife, loans received by Nexbev, and his interest in Refocus HPV.
The alleged omissions, Drink Up claims, were made knowingly and fraudulently, therefore his debt to Drink Up should be deemed nondischargeable.
Manhattan attorneys Alex Spizz and Jill Makower, and Minneapolis attorney David G. Hellmuth represent Drink Up.
New Jersey attorney Scott J. Goldstein represents Sessoms.
This case is based on a loan to own scam that was initiated by the Garmax Group out of Minneapolis Minnesota. The crucifixion of Charles L. Sessoms in this media post is just one of the tactics used to ruin his reputation. Maybe this media outlet should have interviewed Mr. Sessoms before printing such damaging information.
The story is a true and accurate account of the adversary proceeding against Mr. Sessoms by Drink Up LLC. It is based entirely on bankruptcy records, including Mr. Sessom’s Chapter 7 petition. Mr. Sessoms’ attorney did not reply to a request for his client’s side of the story. And last June, U.S. Bankruptcy Judge Cecelia Morris ruled in favor of Drink Up LLC and denied Mr. Sessoms’ petition to discharge the debt.