Trustee finalizes settlement in Dusty Old Cars bankruptcy case | News, Sports, Jobs

CONCORD – The bankruptcy action in the Dusty Old Cars saga continues to wind down, as the trustee liquidating the defunct classic car dealer has finalized a financial settlement at the heart of the criminal case.

Nashua attorney Michael Askenaizer, appointed last year to oversee the company’s liquidation, reached an agreement with Gold Ridge MicroCap LLC for the loan to Stephan Condodemetraky’s company, which was secured by a collection of cars obtained fraudulently.

According to court records, Condodemetraky was found in default on a $110,000 loan from Gold Ridge in 2013 and ordered to repay $150,000. Condodemetraky reached an agreement to secure the settlement amount with a collection of 10 classic cars he had just acquired for his business, Dusty Old Cars.

The problem was that Condodemetraky didn’t own the cars he was using as loan collateral, according to court documents.

Those 10 cars and the defaulted loan are at the heart of the first of three criminal cases that Condodemetraky is currently fighting.

Last year, the Merrimack County Superior Court grand jury returned 20 indictments primarily related to the case. The indictments charge Condodemetraky with 10 counts of title application fraud and nine counts of forgery for allegedly forging sales deals on cars owned by Manchester resident Brad West. He is also charged with one count of witness sabotage for allegedly trying to get a former employee, Christopher Haes, to lie to the grand jury while the investigation was underway earlier this year.

On Monday, US Bankruptcy Court Judge Bruce Harwood approved an agreement between Askenaizer and Gold Ridge to settle a portion of the money owed. Gold Ridge will receive a payment of $33,000, along with a 50% share in the sale of select vehicles totaling an additional $20,000. From there, the company is allowed to attach a secured claim against the assets of the company for $150,000 and unsecured claims for more than $700,000.

Condodemetraky faces theft charges in Rockingham and Hillsborough Superior Courts, in addition to the Merrimack County cases. The total of 31 felony indictments comes after more than 130 people complained to the New Hampshire attorney general’s office about its business practices.

Many former consignment customers have told The Telegraph that Condodemetraky routinely keeps proceeds from consignment sales without paying the owner of the vehicle. He sometimes paid a fraction of the net selling price, after charging what customers said were bogus charges and phantom repairs. In total, more than 130 people filed complaints against Condodemetraky and Dusty Old Cars.

Condodemetraky filed for bankruptcy in February, seeking Chapter 11 protection for his business. Shortly after filing for a reorganization of his business, court-appointed trustee Askenaizer successfully petitioned the court to turn the bankruptcy into a Chapter 7 liquidation. Askenaizer testified that Condodemetraky hid and destroyed business records, making it impossible to operate the business.

Askenaizer has since returned the vehicles to the original owners and sold the remaining cars through an auction service. Before his troubles began, Condodemetraky owned a warehouse in Nashua with 400 classic cars and a thriving business with 25 employees. Askenaizer called the company a Ponzi scheme in court filings, while estimating the total fraud to be between $3 million and $4 million.

Askenaizer recently settled with Condodemetraky in bankruptcy court for a fraud lawsuit. Although they asked for nearly $5 million in the filing, they agreed to settle for $110,000.

Damien Fisher can be reached at 594-1245 or or @Telegraph_DF.


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