Case 14-19469

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IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF MARYLAND

IN RE:
KRISTINA L. ROBERTS
Debtor

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Bankruptcy No. 14-19469-TJC

(Chapter 7)

ROGER SCHLOSSBERG, TRUSTEE

18421 Henson Boulevard, Suite 201
Hagerstown, MD 21742
Plaintiff

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v.

Adversary No. _____________

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KRISTINA L. ROBERTS
2500 Old Largo Road
Upper Marlboro, MD 20772
Defendant
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TRUSTEES COMPLAINT OBJECTING TO DISCHARGE OF DEBTOR

TO THE HONORABLE THOMAS J. CATLIOTA, UNITED STATES BANKRUPTCY
COURT:
COMES NOW, the Plaintiff, Roger Schlossberg, Trustee, by and through his undersigned
counsel, Schlossberg & Mastro, and in support of his Trustees Complaint Objecting to
Discharge of Debtor, hereby respectfully represents as follows:
Jurisdiction, Venue, Etc.
1. The instant bankruptcy case was commenced upon the filing by the Debtor Kristina L.
Roberts of a Voluntary Petition under Chapter 7 of the Bankruptcy Code on June 11, 2014 (the
Petition Date), and an Order for Relief thereupon was entered.
2. This Court is vested with jurisdiction over this adversary proceeding pursuant to 28
U.S.C. 1334, 28 U.S.C. 157(a) and United States District Court Local Rule No. 402. Further,
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this adversary proceeding is a core proceeding pursuant to the provisions of 28 U.S.C.

157(b)(2)(J). Venue in this Court is appropriate pursuant to the provisions of 28 U.S.C.
1409(a).
Parties
3. As contemplated in 11 U.S.C. 702(a), your Plaintiff Roger Schlossberg duly was
appointed Chapter 7 Interim Trustee herein. Following the conduct of that first meeting of
creditors required by 11 U.S.C. 341(a) without the election of a Trustee as permitted by 11
U.S.C. 702(b)-(c), your Plaintiff continued in office as permanent Chapter 7 Trustee herein
pursuant to the provisions of 11 U.S.C. 702(d).
4. The Defendant Kristina L. Roberts (the Debtor) is an adult resident of the State of
Maryland with mailing address and residence as set forth in the caption hereof.
Factual Background
The Debtors Sworn Schedules and SOFA
5. On the Petition Date, the Debtor caused to be filed herein her Schedules of Assets and
Liabilities (the Schedules; Docket No. 1, pps. 8-25) and her Statement of Financial Affairs (the
SOFA; Docket No. 1, pps. 26-33). Appended on the last page of each said Schedules and
SOFA is a Declaration Under Penalty of Perjury by Individual Debtor by which the Debtor
declared under the penalties of perjury that the contents of both said filings were true and correct.
6. In response to the required disclosure of the interests of the Debtor in numerous
categories of intangible property, the Debtor responded on Schedule B as follows:
13. Stock and interests in incorporated
and unincorporated businesses.
Itemize.

None

14. Interests in partnerships or joint

Ventures. Itemize.

None

16.

None

Accounts receivable.

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18.

21.

22.

23.

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Other liquidated debts owed to debtor

Including tax refunds. Give particulars.

None

Other contingent and unliquidated

claims of every nature, including tax
refunds, counterclaims of the debtor,
and rights to setoff claims. Give estimated
value of each.

None

Patents, copyrights, other and intellectual

Property. Give particulars.

None

Licenses, franchises, and other general

Intangibles. Give particulars.

None1

7. Responding to Schedule Is requirement for provision of detailed monthly income

information, the Debtor reported that she received only $3,159.00 in net monthly income.
8. Responding to the requirement on the SOFA at Item 1 for a disclosure of the Debtors
income during that portion of calendar year 2014 preceding the Petition Date and for the two
calendar years immediately preceding, the Debtor reported the following:
AMOUNT
$28,374.002
$91,000.00
$362,000.00

SOURCE
2014 YTD: Debtor Simon & Schuster, INC
2013: Debtor Simon & Schuster, INC
2012: Debtor Simon & Schuster, INC

9. Responding to the requirement on the SOFA at Item 10 for the provision of a list of all
property transferred by the Debtor outside the ordinary course of business within two years
preceding the Petition Date, the Debtor reported: None.
Zane Is Revealed
10. In fact, the Debtors Schedules and SOFA were but a tissue of lies intentionally
crafted by the Debtor to obscure the Debtors pseudonymous fame and reputation as Zane -- a
bestselling author of erotic fiction with a broad national audience in the African-American
1

On January 13, 2015, the Debtor filed her Amended Schedule B(12)and (23) (Docket No. 36) amending her
answers to Items (B)(12) and B(23) belatedly reporting a substantial interest in her 401(K) account and
acknowledging her interest in the Zane name with a putative valuation of unknown.
2

On January 13, 2015, the Debtor filed her Amended SOFA reporting income of $100,968.00 for that period
of calendar year 2014 preceding the Petition Date.
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community. As of the Petition Date, the Debtor boasted more than a score of copyrights to her
credit and dozens of books in print; primarily through her long-time publisher, Simon &
Schuster, Inc. Significantly, neither the Debtors Schedules nor her SOFA even hinted at her
prior success nor disclosed the substantial royalties currently being paid to her and anticipated in
the future.3
The Enrizon Diversion
11. Further, as developed by your Trustees investigation to date, the Debtor also failed
to reveal in her sworn Schedules and SOFA her relationship with Enrizon Worldwide, Inc.
(Enrizon), a Maryland corporation formed on or about April 1, 2013. As developed by your
Trustee to date, and upon information and belief, your Trustee avers that Enrizon was organized
at the behest and direction of the Debtor in the Spring of 2013 as a vehicle to divert the Debtors
substantial earnings away from the grasp of her creditors.
12. In connection with that effort, the Debtor caused all of the corporate stock of Enrizon
to be vested in her son, Andre L. Roberts, who subsequently served as the sole director and
officer of that corporation.
13. The Debtor thereupon caused all of her numerous entitlements to payment from
Simon & Schuster for royalties, etc., to be assigned and thereafter paid directly to Enrizon.
Relying on the assignments and directions of the Debtor, Simon & Schuster thereafter caused
hundreds of thousands of dollars of such royalties, etc., to be paid to Enrizon, including the most
recent payment in the amount of $98,266.34 paid to Enrizon on January 5, 2015. Enrizon, acting
3

While the Debtors Schedule I did reveal her occupation as an author employed by Simon & Schuster, the
Debtor and her counsel explained her role with that publishing house to be merely that of a salaried publisher of a
small imprint trading as Strebor Books. By contrast, and as subsequently developed by your Trustee, all of the
Zane publications are made through the Atria imprint of Simon & Schuster; to which no reference was made in
either the Schedules or the SOFA.

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through the said Andre Roberts at the direction of his mother, the Debtor Kristina Roberts,
thereupon caused said sums to be dissipated in their entirety and paid, inter alia, for the personal
parochial benefit of the Debtor and her children; thereby denying the Trustee and the creditors of
the instant Estate the benefit of said sums.4
Continuing Investigation
14. Your Plaintiff/Trustees investigation into the above-described matters is continuing.
As such, your Trustee contemplates that additional evidence will be developed during said
investigation and through discovery herein. Your Trustee contemplates that amendment of the
instant Complaint may be appropriate to address such future developments. Accordingly, your
Trustee expressly reserves the right so to amend the Complaint in a timely fashion consistent
with the Bankruptcy Rules of Procedure.
COUNT I
Objection to Discharge - Transfer, Removal, Destruction,
Mutilation or Concealment of Property
[11 U.S.C. 727(a)(2)]
15. The allegations contained in Paragraphs 1-14, supra, hereby are incorporated by
reference as if fully set forth in the body of this Count I.
16. As hereinabove set forth, the Debtor, with intent to hinder, delay and/or defraud her
creditors or an officer of the Estate charged with custody of property under the Bankruptcy Code,
has transferred, removed, destroyed, mutilated or concealed, or has permitted to be transferred,
removed, destroyed, mutilated or concealed (a) property of the Debtor within one (1) year
before the Petition Date; or (b) property of the Bankruptcy Estate after the Petition Date.
17. Pursuant to the provisions of 11 U.S.C. 727(a)(2), the discharge of the Debtor

Upon learning of the full extent of the above scheme involving the Debtor and Enrizon, your Trustee
wrested control of Enrizon from Andre Roberts on January 15, 2015 and forthwith thereafter caused Enrizon to file a
Voluntary Petition under Chapter 11 of the Bankruptcy Code in Case No. 15-10863 now pending before this Court.
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should be denied.
WHEREFORE, your Plaintiff/Trustee, respectfully prays that this Honorable Court:
1. DENY the discharge of the Debtor.
2. ORDER such other and further relief as the nature of this cause and the interests of
justice may require.
COUNT II
Objection to Discharge - False Oath
[11 U.S.C. 727(a)(4)]
18. The allegations contained in Paragraphs 1-17, supra, hereby are incorporated by
reference as if fully set forth in the body of this Count II.
19. As hereinabove set forth, the Debtor knowingly and fraudulently, in or in connection
with the instant bankruptcy case, made false oaths with respect to, inter alia:
a. Those Schedules of Assets and Liabilities filed herein as aforesaid;
b. That Statement of Financial Affairs filed herein as aforesaid;
c. That testimony provided by her at the Meeting of Creditors conducted herein
as aforesaid.
20. Pursuant to the provisions of 11 U.S.C. 727(a)(4), the discharge of the Debtor
should be denied.
WHEREFORE, your Plaintiff/Trustee, respectfully prays that this Honorable Court:
1. DENY the discharge of the Debtor.
2. ORDER such other and further relief as the nature of this cause and the interests of
justice may require.

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Respectfully submitted,
SCHLOSSBERG & MASTRO
By:

/s/ Roger Schlossberg

Roger Schlossberg
18421 Henson Boulevard, Suite 201
Hagerstown, MD 21741-4227
(301) 739-8610
Attorney for Trustee

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