California bankruptcy estate fiduciary sues former Natpe boss over 2022 collapse
The Californian bankruptcy estate fiduciary has filed a legal complaint against former Natpe CEO JP Bommel and former legal advisor Arnold Peter, alleging mismanagement leading to the trade event organiser’s 2022 bankruptcy.
JP Bommel
The bankruptcy estate is seeking recovery of more than US$1.7m in allegedly improper payments related to Natpe’s Chapter 11 filing of the not-for-profit events business in 2022.
The complaint alleges 12 causes of action:
– Breach of fiduciary duty
– Aiding and abetting breach of fiduciary duty
– Corporate waste
– Negligence
– Avoidance of fraudulent transfers with actual intent
– Avoidance of constructively fraudulent transfers
– Avoidance of one-year transfers
– Avoidance of unauthorised post-petition transfers
– Conversion
– Recovery of avoided transfer
– Unjust enrichment
– Disallowance of proof of claim
In a claim initially filed on October 11, 2024, by the Central District of California San Fernando Valley Division, the complainant alleges, among other things: “Bommel authorized Natpe to enter into numerous transactions for which it received little or no consideration without limitation.”
The filing continues: “In addition Bommel actively mismanaged and failed to adequately oversee the debtor’s (Natpe’s) finances and continued to engage in self-dealing, irrationally squandered corporate assets and actively drained the debtor’s (Natpe’s) cash in the months leading up to the Natpe bankruptcy filing, thereby causing unreasonable and knowable losses to Natpe where no business person of ordinary and sound judgement could conclude that the corporation has received adequate consideration.”
The claim cites a number of payments made, but in particular notes that from January 8, 2022, the date on which Natpe cancelled the 2022 event, Natpe paid US$450,000 (which included substantial deferred compensation, contractual severance and vacation pay) to Bommel on his direction. The claim also cites that Natpe paid the Peter Law Group US$221,410.50.
The citation goes on to say Bommel “committed numerous other acts and omissions in blatant violation of law or policy giving rise to claims for breach of fiduciary duty, including but not limited to:
– Ignoring conflicts of interest
– Failing to report and mishandling of insurance coverage issues
– Mismanaging the debtor’s (Natpe’s) affairs for personal gain or failing to act in the debtor’s (Natpe’s) best interests
– Failing to ensure that the debtor’s resources were used to achieve its public benefit purposes as a non-profit organisation
– Withholding knowable information material to the debtor’s board and creditors.”
These allegations remain unproven. Neither defendants nor their attorneys have filed responses as of publication date. C21 has reached out to Bommel for comment. The case (1:24-ap-01055-MB) remains pending in California Bankruptcy Court.
