Dorula et al v. Brooks et al

Filing 14

MEMORANDUM OPINION. Signed by District Judge Liam O'Grady on 9/6/2016. (awac)

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF VIRGINIA
Alexandria Division

Starlight Group, LLC,
Debtor^

Michael Dorula, Robert Meletti,

Civil Action No. 1:16-cv-622

and Julie Meletti,

Appeal from United States
Bankruptcy Court, Eastern District
of Virginia

Appellants,

Case No.:l 1-18241

V.

William Brooks and Charles M. Floury,

Appellees.

Memorandum Opinion

This matter comes before the Court on Appellants Michael Dorula, Robert Meletti, and
Julie Meletti's appeal from the Bankruptcy Court's Memorandum Opinion dated May 20,2016.
Dkt. No 1, Exh. 2. The appeal has been fully briefed by the parties. Dkt. Nos. 10,12,13. This
Court has jurisdiction over the appeal pursuant to 28 U.S.C. 158(a)(1). For the reasons discussed

herein, this Court AFFIRMS the decision of the Bankruptcy Court.
I. Background
A. Factual Background

This case arises out of the Chapter 7 bankruptcy of Starlight Group, LLC, a real estate

investment entity formed by Spencer Brand in 2004. Brand formed Starlight in order to solicit
investments to purchase residential real estate in Northern Virginia and resell it for a profit. The

1