Judge Laura Taylor Swain
Nova Group Inc. (Nova) was plan administrator of the Charter Oak Trust Welfare Benefit Plan (Charter Oak Trust). In connection with actions arising over the payment of proceeds from two life policies, it was determined that, among other companies, Carpenter controlled Charter Oak Trust and Nova. After entry of judgment Universitas Education sought an order directing Carpenter to turn over assets. The court found that Carpenter frequently engaged in direct or indirect intercompany transfers between entities that he creates and controls, and that through such entities Carpenter evaded discovery of the disposition of the subject life insurance policies following transfers of money from Charter Oak Trust. Further, Carpenter’s affiliated and controlled entities have continued to transfer assets from judgment-debtor Nova and Charter Oak Trust. As a result the court granted Universitas’ request for a preliminary injunction barring Carpenter’s transfer of assets pending resolution of Universitas’ turnover motion. However, the court permitted Carpenter to expend or transfer—with certain conditions attached thereto—of up to an aggregate amount of $20,000 monthly for ordinary expenses for himself and all the entities subject to the court’s injunction.