NADN trustee files more complaints

Kevin Rademacher

Thursday, Aug. 26, 2004 | 11:10 a.m.

The trustee in charge of the liquidation of National Audit Defense Network, the failed Las Vegas-based tax service company, has filed a series of new complaints seeking to recover funds on behalf of the estate.

Trustee William Leonard filed a complaint against KeyBank USA and Diversified Filing Solutions Sales Corp. seeking $1.7 million the companies held in reserve for the processing of credit card orders for NADN products and services.

The complaint said that the trustee "had made repeated demands on KeyBank and DAS for an accounting of these funds ... but an accounting and turnover of the funds due the debtor's estate have been consistently refused."

Leonard also filed a complaint against the estate of NADN founder and executive Robert Bennington, who apparently committed suicide in June. The complaint alleges that Bennington received $500,000 in improper transfers from the company prior to its collapse. Another complaint was filed against Bennington's ex-wife, Judy Sherwood Bennington, alleging that a $400,000 alimony payment she received from the company was improper.

Leonard previously filed complaints seeking $2.5 million from NADN General Manager Alan Rodrigues and $1.5 million from Weston Coolidge, NADN's president and owner.

The liquidation of National Audit Defense Network, which began in May, came amid mounting legal trouble. Those woes culminated in April when the Internal Revenue Service sought a restraining order against the company claiming that some of the products it was selling were fraudulent.