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IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

In re: Chapter 7 (Involuntary)

Case No. 19-10573 (KG)
CommuniClique, Inc.

Debtor. Objection Date: October 2, 2019 at 4:00 p.m.

Hearing Date: To be assigned by the Court

In re: Chapter 7 (Involuntary)

Case No. 19-10574 (KG)
Andrew Brent Powers

Debtor. Objection Date: October 2, 2019 at 4:00 p.m.

Hearing Date: To be assigned by the Court

MOTION OF ALFRED T. GIULIANO, CHAPTER 7 TRUSTEE FOR FURTHER

ADDITIONAL EXTENSION OF TIME TO FILE SCHEDULES AND STATEMENT OF
FINANCIAL AFFAIRS AND 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 counsel, hereby

moves this Court for entry of an Order approving the Motion of Alfred T. Giuliano, Chapter 7

Trustee for Further Additional Extension of Time to File Schedules and Statement of Financial

Affairs (as defined below), and 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 (the “Motion”). In support

of the Motion the Trustee avers as follows:

Jurisdiction

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

1334. This matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A).

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2. 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 were due by May 23, 2019 and the list of all creditors were

due on May 16, 2019.

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].

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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 were due by May 23, 2019 and the list of all creditors were 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 Trustee believes that the Debtors are currently not represented by counsel in

these Bankruptcy Cases.

10. On June 3, 2019 an Order was entered by this Court approving the Motions to

Withdraw in the CommuniClique Bankruptcy Case [D.I. No. 51] and also in the Powers

Bankruptcy Case [D.I. No. 53].

11. On July 10, 2019, the Trustee filed the Motion of Alfred T. Giuliano, Chapter 7

Trustee for Additional Extension of Time to File Schedules and Statement of Financial Affairs

and Authorizing but not Requiring Chapter 7 Trustee to Prepare and File Debtors Schedules and

Statement of Financial Affairs and Approving Trustees Reimbursement of Expenses Incurred as

an Administrative Expense in the CommuniClique Bankruptcy Case [D.I. No. 73] and also in the

Powers Bankruptcy Case [D.I. No. 72] (collectively, the “Motions to Extend”).

12. On August 12, 2019 an Order was entered by this Court approving the Motions to

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Extend in the CommuniClique Bankruptcy Case [D.I. No. 78] and also in the Powers Bankruptcy

Case [D.I. No. 79] and further extending the time to prepare and file the Schedules, Lists and

Financial Affairs of the Debtors to and including September 11, 2019 (the “Extension Period”).

13. By this Motion the Trustee seeks a further extension of the Extension Period to

file the Schedules, Lists and Financial Affairs.

14. The Trustee for the reasons set forth below has not yet completed drafting 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”).

15. On or about May 30, 2019 the Debtor, Powers was arrested and charged by

Criminal Complaint in the U.S. District Court for the Eastern District of Virginia with felony of

Inducing Interstate Travel in Execution of Fraud Scheme. The Affidavit by FBI Special Agent,

Jamie M. Vera filed in support of the Criminal Complaint details numerous accounts of Powers

allegedly misleading investors as part of a multimillion dollar fraud scheme. In light of the

pending criminal prosecution, the Trustee is unlikely to voluntarily obtain needed information

from Powers and Powers failed to appear for the first meeting of creditors scheduled under 11

U.S.C. Section 341.

16. The Trustee has continued his efforts in (i) gathering information on the

businesses of CommuniClique and its related party, Powers, (ii) gathering information related to

the facts underlying two actions (the “Pending Litigation”) filed by the Virginia State

Corporation Commission in connection with an investigation of CommuniClique, Inc. and

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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 and

obtaining documents from counsel, parties-in-interest, former employees/contractors and

financial institutions in order to facilitate the completion of the Schedules, Lists and Financial

Affairs and the liquidation of the Estates.

17. The Trustee, based upon information obtained has now concluded his forensic

review and is in the process of sharing the results of same with the Office of the United States

Trustee and other parties in interest in order to make a determination as to whether the

administration of these Bankruptcy Cases should continue, or, alternatively whether the

Bankruptcy Cases should be dismissed.

Relief Requested

18. The Trustee in order to permit the aforesaid determination concerning the

continued administration of the Bankruptcy Cases to be made in consultation with the Office of

the United States Trustee and other parties in interest, by this Motion respectfully requests an

Order further extending the Extension Period to prepare and file the Debtors’ Schedules, Lists

and Financial Affairs in these Bankruptcy Cases until November 11, 2019, 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).

19. Notwithstanding the Trustee’s request for authorization to prepare and file the

Schedules, Lists and Financial Affairs, the Trustee continues to reserve all rights to seek to

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compel the Debtors or other parties in interest to prepare and file the Schedules, Lists and

Financial Affairs and also reserves the right to seek a further extension of the Extension Period.

20. In accordance with 1007(a)(5) and (c), notice of this Motion has been provided to

(i) Debtor, (ii) counsel for the Petitioning Creditors, (iii) 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: September 11, 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

Counsel to the Chapter 7 Trustee,

Alfred T. Giuliano

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