McCarthy v. Qtrax, Inc.

Filing 3

ORDERED that the R&R is ADOPTED IN FULL. It is further ORDERED that the motion for default judgment is GRANTED. It is further ORDERED that JUDGMENT is entered for plaintiff/trustee against defendant in the amount of $1,630,000.00 in principal, $1,900,010.00 in interest, per diem interest of $803.84 from March 7, 2017, and $350.00 in filing fee costs. Interest on the principal amount of the Judgment will accrue post-Judgment at the statutory rate. Signed by District Judge T. S. Ellis, III on 07/26/2017. (jlan)

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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division In re: OSAMA M. EL-ATARI, Debtor. Case No. l:17-cv-794 KEVIN R. McCarthy, Trustee, V. QTRAX,INC., Defendant ORDER The matteris beforethe Courton a Reportand Recommendation ("R&R")from the United StatesBankruptcy Court for the EasternDistrictof Virginia, recommending that plaintifE'trustee's motion for default judgment be granted. As there is no objection to the R&R, the findmgs and conclusions of the Bankruptcy Court will be adopted and the motion for default judgment will be granted. Thisaction relates to a Chapter 7 bankruptcy filed by debtorOsama El-Atari. Specifically, plaintifiE'trustee Kevin McCarthy initiated the instant proceeding pursuant to 11 U.S.C. § 542 against defendant Qtrax, Inc., seeking turnover of amounts originally owed to the bankruptcy estate pursuant to a promissory note. In this regard, the complaint alleges that defendant executed and delivered a promissory note worth $1,630,000.00 to the debtor, which note the debtor subsequently assigned to a bank. In turn, that bank released its interest in the promissory note to plaintifiPtrustee. Accordingly, plaintifiG'trustee, as the note-holder, now has the right to enforce that note. Importantly, the promissory note provides, inler alia, that of S803 .84 &om March 7, 2017. and $3S0.00 in filing fee costs. Interest on the principal amount of the Judgment will accrue post-Judgment at the statutory rate. See 28 U.S.C. § 1961. The Cle?k is directed to send a copy ofthis Order to all counsel of record and defendant, to enter judgment for pwn1iff/1rustee punuant to Rule 9021, Fed. R. Banla. P., and to close this action. Alexandria, Virginia July 26, 2017 4

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