A Manhattan firm claims that an Orange County contractor has stalled paying a $173,000 debt by transferring assets to a series of companies.
Martelvich LLC sued David M. Marcinak, of Pine Bush, Jan. 5 in U.S. Bankruptcy Court, Poughkeepsie, to stop him from using bankruptcy protection to discharge the debt.
“Defendant’s action in transferring his assets evidence a concerted scheme to avoid having to honor his obligations,” the complaint states.
Marcinak’s bankruptcy attorney, Andrea B. Malin, did not reply to a message asking for his side of the story.
Martelvich says it hired Marcinak’s Roundtable I Inc. in 2019 and paid $169,104 to work on a house in Highland, Ulster County. Instead, the firm claims, Marcinak diverted the funds.
Martelvich sued for breach of contract in Ulster Supreme Court in 2020, and the court ordered the parties to take the dispute to arbitration.
In August 2022, the arbitrator awarded $170,145 to Martelvich.
By then, Marcinak had formed Lokahi Inc., and later, Lokahi Inns LLC, allegedly to hide real estate assets.
In December 2022, for instance, Lokahi transferred a Marcinak property in Ulster to a Brooklyn woman for $10.
In February 2023, an Ulster Supreme Court judge confirmed a $173,382 arbitration award, including interest. A week later, the Brooklyn woman transferred the Ulster property to a newly created corporation, for $10.
Last April, Martelvich sued Marcinak, the Brooklyn woman, and their companies in Ulster Supreme Court, demanding that the property transfers be set aside. In August, the court ordered Marcinak to explain why he should not be held in contempt of court for failing to respond to a subpoena.
Weeks later, Marcinak petitioned for bankruptcy protection, seeking to reorganize his debts and automatically freezing the county court action.
He declared $319,634 in assets, consisting mostly of his home in Pine Bush, and $512,153 in liabilities, including a mortgage and the $173,382 Martelvich debt.
Martelvich claims the debt may not be discharged because money was obtained by false pretense or actual fraud and because assets were transferred with the intent to hinder or delay the collection of a court judgment.
Martelvich is represented by West Harrison attorney Wendy Marie Weathers.
