5:21-bk-70177 Doc#: 39 Filed: 04/13/21 Entered: 04/13/21 17:35:43 Page 1 of 6

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE WESTERN DISTRICT OF ARKANSAS
FAYETTEVILLE DIVISION

IN RE: §
§
SHEFTE, DON FREDERICK §
§ Case No. 5:21-bk-70177
§
Debtor § Chapter 7

MOTION FOR RULE 2004 EXAMINATION AND FOR

PRODUCTION OF DOCUMENTS

Comes now, Bruce Lewin, (“Creditor”) by and through his undersigned counsel, and for

his Motion for Rule 2004 Examination and for Production of Documents (the “Motion”) states and

alleges as follows:

JURISDICTION AND VENUE

1. The Court has jurisdiction over the Motion pursuant to 28 U.S.C. §§ 157 and 1334.

This is a core proceeding pursuant to 28 U.S.C. § 157(b). Venue is proper pursuant to 28 U.S.C.

§§ 1408 and 1409.

BACKGROUND

2. The Debtor commenced this bankruptcy case by filing a voluntary Chapter 7

petition on February 8, 2021 (the “Petition Date”)

3. On June 9, 2020, approximately eight months prior to the Petition Date, the Circuit

Court of Madison County, Arkansas entered a Decree of Absolute Divorce (the “Divorce Decree”)

which dissolved Debtor’s nearly fifty-year marriage to Diana Shefte. The Divorce Decree

incorporated by reference a Property Settlement Agreement which indicates that at the time of

divorce the Debtor and his wife owned at least eleven bank or brokerage accounts between them.
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The Property Settlement Agreement further provided that the Debtor’s ex-wife was entitled to keep

certain real property in California which appears, from basic internet searches, to have a value in

excess of one-million dollars.

4. Hamilton M. Mitchell was appointed as and remains the acting trustee (“Trustee”)

in this case.

5. The Debtor listed Creditor as a general unsecured creditor by virtue of a default

judgment (the “Judgment”) that Creditor obtained against Debtor and others in the Supreme Court

of the State of New York.

6. The Judgment was entered on October 15, 2018 and is in the total amount of

$1,527,021.98 plus post judgment interest accruing at the rate of 9.00%.

7. The complaint which resulted in the Judgment contains a claim for conversion.

Numerous domestic and foreign judgments against Debtor; his former employer, Hannover House,

Inc.; and the C.E.O. of Hannover House, Eric Parkinson, are contained within the records of the

Circuit Courts of Benton and Washington County, Arkansas. Many of these judgments stem from

complaints with fact patterns similar to Creditor’s complaint which resulted in the Judgment.

8. Prior to the Petition Date, Creditor and other judgment creditors sought to locate

Debtor’s assets to seize in satisfaction of their judgments without success.

9. The Trustee held and concluded the Debtor’s creditors meeting under § 341(a) on

March 12, 2021.

10. Creditor did not have counsel engaged for the bankruptcy at the time of the creditors

meeting. However, numerous other creditors did appear. Upon information and belief, the creditors

meeting lasted for more than an hour-and-twenty minutes.

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11. Creditor wishes to examine the Debtor under oath and with the benefit of Debtor

produced documents to investigate the Debtor’s financial condition and the Debtor’s conduct

which could affect his right to a discharge or the dischargeability of Creditor’s Judgment.

LEGAL ARGUMENT

12. Pursuant to Rule 2004(a), “on the motion of any party in interest, the court may

order the examination of any entity.” Fed. R. Bankr. P. 2004(a). Federal Rule of Bankruptcy

Procedure 2004(b) establishes the scope of the examination: “The examination… may relate only

to the acts, conduct, or property or to the liabilities and financial condition of the debtor, or to any

matter to which may affect the administration of the debtor’s estate….” Fed. R. Bankr. P. 2004(b).

13. The scope of Rule 2004 is broad and is intended to allow parties-in-interest to fully

investigate any matter affecting the administration of the estate. First Fin. Sav. Assoc’n, Inc. v.

Kipp (In re Kipp), 86 B.R. 490, 491 (Bankr. W.D. Tex. 1988) (citing In re GHR Energy Corp., 33

B.R. 451, 453 (Bankr.D.Mass.1983)) (“[T]he scope of [a Rule 2004] examination is virtually

unlimited.”). Rule 2004 examinations provide opportunities for “discovering assets, examining

transactions, and determining whether wrongdoing has occurred.” In re Washington Mutual, Inc.,

408 B.R. 45, 50 (Bankr. D. Del. 2009) (citing In re Enron Corp., 281 B.R. 836, 840 (Bankr.

S.D.N.Y. 2002)). Pursuant to Rule 2004(c), the Court may also compel the production of

documents. Fed. R. Bankr. P. 2004(c).

RELIEF REQUESTED

14. By this Motion, Creditor seeks an order under Rule 2004 of the Federal Rules of

Bankruptcy Procedure requiring the Debtor to appear for a Rule 2004 examination for up to a full

day and to produce the documents described in Exhibit A hereto.

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15. Creditor seeks to conduct the examination at a mutually convenient time between

May 5, 2021 and June 10, 2021. The Rule 2004 Examination shall be held either in the office of

Debtor’s counsel, another mutually agreed location, or via Zoom. The Creditor seeks an order

requiring the documents described in Exhibit A to be produced to Creditor’s undersigned counsel

at least seven days prior to the Court ordered examination.

WHEREFORE, based on the foregoing facts and law, Creditor respectfully requests that

this Court enter an order: (i) commanding the Debtor to appear for a Rule 2004 Examination not

later than June 10, 2021; (ii) commanding the Debtor to produce the documents described in

Exhibit A to Creditor’s counsel at least seven days before appearing for the examination; and (iii)

and awarding Creditor all other relief to which he may prove himself to be entitled.

Respectfully submitted,

/s/ J. Brian Ferguson

J. Brian Ferguson
Arkansas Bar No. AR2018117
Ferguson Law Firm, PLLC
3333 Pinnacle Hills Pkwy, Suite 410
Rogers, AR 72758
(479) 464-4418 (Telephone)
brian@ozarkfunds.com

Attorney for Bruce Lewin, Creditor

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Certificate of Service

I hereby certify that on April 13, 2021, a true and correct copy of the foregoing document
was served via electronic mail on the parties subscribing to the Court’s CM/ECF system in this
case and via first class United States mail postage prepaid on the parties listed below:

D. Frederick Shefte
3741 N. Old Wire Road
Fayetteville, AR 72703-0000

/s/ J. Brian Ferguson_

J. Brian Ferguson
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EXHIBIT A

Schedule of Documents to be Produced

1. Account statements (for the two years prior to February 8, 2021) and ownership
documentation for each bank and brokerage account listed in Debtor’s Property Settlement
Agreement (“Property Settlement”) incorporated into Debtor’s Decree of Absolute
Divorce (“Divorce Decree”) dated June 9, 2020 and entered in the Circuit Court of Madison
County on June 12, 2020.

2. Exhibit A to the Property Settlement.

3. Exhibit B to the Property Settlement.

4. All written communications, including text and email, between Debtor and any vendor or
purchaser concerning the move called “Dancin’, It’s On!” (“Dancin’”).

5. All written communications, including text and email, between Debtor and Bruce Lewin
concerning Dancin’.

6. All written communications, including text and email, between Debtor and Eric Parkinson
concerning Dancin’.

7. All written communications, including text and email, between Debtor and any agent or
employee of Hannover House, Inc. or Medallion Releasing, Inc. concerning Dancin’.

8. All written communications, including text and email, between Debtor and any third party
or parties concerning or related to Dancin’.

9. Debtor’s federal and all state tax returns for the years 2015 through 2020.

10. All documents and communications which show the revenues that Hannover House, Inc.
or Medallion Releasing, Inc. received related to Dancin’.

11. All documents concerning or relating to any meeting between Bruce Lewin and Debtor.

12. All bank statements concerning, relating to or reflecting aby funds received or remitted by
Debtor, Hannover House, Inc., or Medallion Releasing, Inc. related to Dancin’, its
production or distribution.