Bankrupt Clique CEO Andy Powers Doesn’t Pay His Bills

Bankrupt Clique CEO Andy Powers doesn’t pay his bills. Powers company, Communiclique (AKA Clique) company was placed into Chapter 7 Bankruptcy. The Deleware judge, in that case, found that Andy Powers, had attempted to defraud the court with forged fraudulent documents. That’s the second time a court found that Powers was guilty of fraud. A court in Virginia in the summer of  2018 found Powers was guilty of embezzlement, tax fraud, bank fraud, wire fraud, and securities fraud (see post) The Deleware judge referred these criminal charges to the US Attorney’s office for prosecution. Not only is he a criminal but bankrupt Clique CEO Andy Powers doesn’t pay his bills.

Andy Powers of Communiclique recently hired a search firm to hire an IT guy to create a new web site for Andy in order to obfuscate search results so that you may not find out that Clique CEO Andy Powers doesn’t pay his bills, that he is a common criminal, a fraud, an embezzler and his feet stink. That’s right Andy, I said it! Your feet stink. Unfortunately for the search firm and the IT guy, Powers stiffed them. He got a web site and they got nada. Do you know why? Because bankrupt Clique CEO Andy Powers doesn’t pay his bills.

He owes the landlord of his home, at 340 Surfview Dr, Pacific Palisades CA 90272 (Check it out on Zillow), costs $35 thousand dollars a month to rent. His landlord is suing to evict him and recover nearly $100K in back rent (see post).

The Landlord for Communiclique’s (AKA Clique) office in LA is suing him for back rent. Former employees including Power’s executive assistant and the company’s Chief Strategy Officer (what does a Chief Strategy Officer strategize about on a company that does nothing but defraud investors out of money?) are suing him for back pay. I received several calls from other former employees who are also owed back pay.

While the company no longer belongs to Powers and is in receivership, Andy Powers continues to release Press Releases, and create content on the web to pretend his business is healthy affording him the ability to continue to defraud, vendors, and investors (see post). Just like Tinkerbell, fictional CEO Andy Powers needs people to believe in him for him to continue to exist. 

Here’s the Lastest Court Ruling in the latest Deleware Bankruptcy Case.

All because Bankrupt Clique CEO Andy Powers Doesn’t Pay His Bills (see a PDF of the latest ruling here or read it below)


Case 19-10573-KG Doc 43
Filed 05/23/19
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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE

Debtor.
In re: 
CommuniClique, Inc.
Chapter 7 (Involuntary) Case No. 19-10573 (KG)

Debtor.
In re: Andrew Brent Powers Debtor.
Chapter 7 (Involuntary) Case No. 19-10574 (KG)

Objection Date: June 14, 2019 at 4:00 p.m. Hearing Date: June 21, 2019 at 11:00 a.m.

 

MOTION OF ALFRED T. GIULIANO, CHAPTER 7 TRUSTEE FOR ORDER (1) EXTENDING TIME FOR THE DEBTORS TO FILE SCHEDULES AND STATEMENT OF FINANCIAL AFFAIRS, AND (2) UPON THE DEBTORS’ FAILURE TO FILE WITHIN THE EXTENSION PERIOD AUTHORIZING BUT NOT REQUIRING CHAPTER 7 TRUSTEE TO PREPARE AND FILE DEBTORS’ SCHEDULES AND STATEMENT OF FINANCIAL AFFAIRS AND APPROVING TRUSTEE’S REIMBURSEMENT OF EXPENSES INCURRED AS AN ADMINISTRATIVE EXPENSE

Alfred T. Giuliano, the chapter 7 trustee (the “Trustee”) for the estates (the “Estates”) of the above-captioned debtors (the “Debtors”), by and through his undersigned proposed counsel, hereby moves this Court for entry of an Order approving the Motion of Alfred T. Giuliano, Chapter 7 Trustee for Order (1) Extending Time for the Debtors to File Schedules and Statement of Financial Affairs (as defined below), and (2) Upon the Debtors’ Failure to File within the Extension Period Authorizing But Not Requiring Chapter 7 Trustee to Prepare and File Debtors’ Schedules and Statement of Financial Affairs (as defined below), and Approving Trustee’s Reimbursement of Expenses Incurred as an Administrative Expense (the “Motion”). In support of the Motion the Trustee avers as follows:

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Case 19-10573-KG    Doc 43   Filed 05/23/19    Page 2 of 5

Jurisdiction

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

2. This matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A). Venue of this proceeding and this Motion is proper in this district pursuant to 28 U.S.C §§ 1408 and 1409.

     3. The statutory predicates for the relief sought herein are Section 521 of Title 11 of the United States Code (the “Bankruptcy Code”) and Rule 1007(a)(5) and (k) of the Federal Rule of Bankruptcy Procedure (the “Bankruptcy Rules”).

Background

     4. On March 15, 2019 (the “Petition Date”), an involuntary petition (the “Involuntary Petitions”) for relief under chapter 7 of the Bankruptcy Code was filed by petitioning creditors (the “Petitioning Creditors”) against CommuniClique, Inc., (“CommuniClique”) (Case No. 19-10573) (the “CommuniClique Bankruptcy Case”) and an Involuntary Petition was also filed against a related party affiliated with the CommuniClique Bankruptcy Case, Andrew Brent Powers (“Powers”) (Case No. 19-10574) (the “Powers Bankruptcy Case”) in this Bankruptcy Court, collectively referred to as (the “Bankruptcy Cases”).

     5. On May 9, 2019, upon consideration of the Involuntary Petitions, this Bankruptcy Court entered an order for relief in the CommuniClique Bankruptcy Case under chapter 7 of the Bankruptcy Code (the “Order for Relief”) [D.I. No. 36]. As stated on the docket entry for the Order for Relief, incomplete filings are due by May 23, 2019 and the list of all creditors are due on May 16, 2019. 

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     6. On May 9, 2019, the Office of the United States Trustee appointed the Trustee as the duly authorized trustee to the Estate of the CommuniClique Bankruptcy Case [D.I. No. 37].

7. On May 9, 2019, upon consideration of the Involuntary Petitions, this Bankruptcy Court entered an Order for Relief in the Powers Bankruptcy Case under chapter 7 of the Bankruptcy Code [D.I. No. 39]. As stated on the docket entry for the Order for Relief, incomplete filings are due by May 23, 2019, and the list of all creditors are due on May 16, 2019.

8. On May 9, 2019, the Office of the United States Trustee appointed the Trustee as the duly authorized trustee to the Estate of the Powers Bankruptcy Case [D.I. No. 40].

9. On May 10, 2019, Debtors’ current counsel, Neil F. Dignon, filed a Motion Seeking to Withdraw as Counsel to the Debtor in the CommuniClique Bankruptcy Case [D.I. No. 40] and also in the Powers Bankruptcy Case [D.I. No. 43] (collectively, the “Motions to Withdraw”). The Motions to Withdraw are currently pending and scheduled for hearing on June 4, 2019.

10. To date, the Trustee has been unable to draft the (i) list containing the names and addresses of each entity included or to be included on Schedules D, E, F, G, and H for the Debtors as required by Bankruptcy Rule 1007(a)(2) (the “Schedules Lists”) or the (ii) schedules, statements, and other documents for the Bankruptcy Cases required to be filed by Bankruptcy Rule 1007(b)(1) (the “Schedules and Documents” and, together with the Schedules Lists, the “Schedules, Lists and Financial Affairs”). Although the Trustee has received some information relating to the structure and pre-petition operations of CommuniClique and its related party, Powers, the Trustee has not received sufficient information, nor has he had ample time, necessary to complete the Schedules, Lists and Financial Affairs for this Estate.

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     11. The Trustee’s efforts up until this point have been primarily focused on (i) gaining an understanding of the businesses of CommuniClique and its related party, Powers, (ii) gaining an understanding of at least two actions (the “Pending Litigation”) filed by the Virginia State Corporation Commission in connection with an investigation of CommuniClique, Inc. and Andrew Brent Powers as well as litigation commenced in the Circuit Court of Fairfax County, Virginia against CommuniClique, Inc. and Andrew Brent Powers by the Jason M. Donahue Trust and Robert and Carole Donahue Family Trust, and (iii) conducting preliminary interviews with  counsel and parties-in-interest in order to facilitate the liquidation of the Estates. 

12. The Trustee, based upon information provided to him, believes that both of the Debtors’ Bankruptcy Cases may have assets that will require administration for the benefit of the creditors of the Estates.

Relief Requested

   13. In light of the foregoing, the Trustee by this Motion respectfully requests an Order extending the deadline for the filing by the Debtors of the Schedules, Lists and Financial Affairs  in these Bankruptcy Cases until June 23, 2019 (the “Extension Period”) and upon the Debtors’ failure to file the Schedules, Lists and Financial Affairs within the Extension Period authorizing but not requiring the Trustee to prepare and file the Schedules, Lists and Financial Affairs within twenty (20) business days after expiration of the Extension Period (the “Trustee’s Extension Period”) on behalf of each Debtor, and allowing, the reimbursement of any and all fees and costs incurred by the Trustee and his professionals (upon approval of fee applications) in the preparation and filing of the Schedules, Lists and Financial Affairs as an administrative expense pursuant to Bankruptcy Rule 1007(k).

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Case 19-10573-KG   Doc 43   Filed 05/23/  19 Page 5 of 5

     14. Notwithstanding the Trustee’s request for authorization to prepare and file the Schedules, Lists and Financial Affairs, the Trustee reserves all rights to seek to compel the Debtors or other parties in interest to prepare and file the Schedules, Lists and Financial Affairs

15. In accordance with 1007(a)(5) and (c), notice of this Motion has been provided to (i) Debtor, (ii) Debtors’ counsel, (iii) counsel for the Petitioning Creditors, (iv) the United States Trustee, and (iv) all parties in interest having requested notice pursuant to Rule 2002. In light of the nature of the relief requested, the Trustee submits that no further notice need be given.   

    WHEREFORE, the Trustee respectfully requests that this Bankruptcy Court enter the proposed form of Order filed with the Motion and grant such other and further relief as is just and proper.

Date: May 23, 2019

COZEN O’CONNOR

/s/ John T. Carroll, III

____________________

John T. Carroll, III (DE No. 4060)
1201 North Market Street
Suite 1001 Wilmington, DE 19801
Telephone: (302) 295-2028
Facsimile: (302) 295-2013
jcarroll@cozen.com

Proposed Counsel to the Chapter 7 Trustee, Alfred T. Giuliano