Former ‘NSync Member Sued in Polaroid Bankruptcy
A California production company run by a former member of '90s boy-band 'NSync is being sued in the Polaroid Corporation bankruptcy case.
On November 23, court-appointed Chapter 7 trustee John Stoebner filed a lawsuit against Lance Bass Productions, LLC-which bears the name of celebrity Lance Bass.
According to the suit, filed in U.S. Bankruptcy Court in Minnesota, Polaroid transferred $40,000 to the company on December 28, 2005. The money was given “as a gift or donation without receiving a reasonably equivalent value in exchange for the transfer.”
At the time of the transfer, Polaroid was owned by a holding company run by Tom Petters and was benefiting from the massive Ponzi scheme that he orchestrated, according to the suit. Polaroid was insolvent when the money was paid, meaning that the transfer was fraudulent.
The transfer was incurred by Polaroid with “actual intent to hinder, delay, or defraud a creditor to which [the company] was or became indebted…” the suit said.
In April, Petters was sentenced to 50 years in prison for running a Ponzi scheme that defrauded investors an estimated $3.65 billion. Polaroid filed for bankruptcy not long after Petters was arrested in 2008. Most of Polaroid's assets were sold last year, and the company now goes by PBE Holding Company.