Mas Sajady’s Alleged Bankruptcy Fraud

Mas Sajady’s 2009 bankruptcy has alot of shady aspects. The most notable of which doesn’t even have to do with his bankruptcy, but his 2009 foreclosure — where he appears to have pocketed hundreds of thousands of dollars from a construction loan. You wonder if his wife at the time knew very little about the financial details: If Sajady withheld them from her, only to learn them when information was published online. Nevertheless, she is responsible for her choices.

Masood and Tracy’s bankruptcy included 18 creditors.  There is speculation that Mas Sajady will again be filing for bankruptcy as his new age business fails.

What follows is a closer look at the legal docs involved with the Sajadys bankruptcy. Visit this page for a closer look at the docs involved with the Sajadys foreclosure.

The March 2017 City Pages article about Sajady revealed the fact that the Sajadys had attempted to hide thousands of dollars in assets and failed to mention the purchase of a minivan days before filing for bankruptcy.

The trustee in the case filed suit against the Sajadys, alleging they lied and concealed funds. While Tracy Sajady also signed the papers, you wonder if she wasn’t told to lie by her husband. The language in the complaint by the trustee is very strong. He basically called the Sajadys liars, alleging they concealed:

  • The existence of a Citizens bank account
  • Approximately $4,000 in additional funds in other bank accounts
  • Cash funds of approximately $5,000
  • The purchase of a minivan
  • The transfer of $2500
  • They also allegedly failed to provide receipts to account for the loss of $13,500 withdrawn from their bank accounts.

The trustee alleged the following counts against the Sajadys:

  1. Concealment & Transfer
  2. False Oaths
  3. Failure to Explain Satisfactorily Loss

 

 

 

How did the Sajadys respond? They pretty much denied everything. Given Mas Sajady’s history of lying — here he is lying prolifically in court to try to take away my free speech — it’s not too hard to know who to believe.

Sajady managed to get the counts dismissed, but it’s not likely he’ll be able to scuttle charges on his next foray into the legal system.