The attorneys appointed to manage property owned by Sumner County development giant Halo Properties during litigation are suing the company's former business partners.
Last year, Halo bigshot Danny Hale was sued by his minority partners for failing to properly distribute proceeds from land sales related to numerous Halo developments in Hendersonville. As a result of that action, Sumner County's chancellor appointed Gallatin lawyers Dennis Powers and John Phillips as receivers of Halo assets.
Now Phillips and Powers are suing Hale, Randy Hoffman — one of those minority partners — and several Halo entities. Powers and Phillips allege they have discovered numerous irregularities related to the entities in receivership, once again regarding monetary disbursements.
According to the complaint, most of these transfers were made by Hale himself and benefitted Hale, Hoffman and two of the companies they own.
The receivers say they've discovered evidence Hale made false loan disbursements and made "accounting adjustments," funneling profits to Hale and Hoffman. In addition, they charge Hale, pictured here, transferred property and money for his own benefit and changed contracts to lower proceeds from sales. They also allege Hale charged real estate commissions from the Indian Lake Village project to Hale Properties higher than what was agreed.
In one case, a $600,000 draw was made against a line of credit for Indian Lake Village. According to the receivers, that money was then deposited into an account for Halo Properties, rather than the ILV entity. And then, according to the complaint, Halo wrote Hale a check for $600,000, but offered no documentation "as to the cause."
The suit alleges the actions by Hale have damaged the entities in receivership in excess of $10 million. The receivers are seeking punitive and compensatory damages.
Attempts to contact Hale, Phillips and Powers were unsuccessful Tuesday.
- ALEX B FRUIN INHERITANCE TRUST; CANDACE F STEFANSIC INHERITANCE TRUST; CANDANCE F STEFANSIC INHERITANCE TRUST; FRUIN, ALEX B TRUSTEE; FRUIN ALEX B INHERITANCE TRUST; STEFANSIC, CANDACE F TRUSTEE; STEFANSIC CANDACE F INHERITANCE TRUST; STEFANSIC CANDANCE F INHERITANCE TRUST
- ROSS, BRIDGETT D
- COOKE, ETHEN LANYARD TRUSTEE; COOKE, ETHEN LEWIS ESTATE
- JACOBS, JESSICA ALEXANDRA; JACOBS, ERIKA BESS