Home / Crime and Justice / Fraudulent Transfer Alleged in Scranton Recycling Deal
Fraudulent Transfer Alleged in Scranton Recycling Deal
6 Aug
Summary
- Lawsuit claims $1 transfer of recycling center was a fraudulent shield.
- Plaintiff alleges transfer aimed to hinder creditors, including himself.
- Case relates to pending class-action suit over inmate labor at the center.
A lawsuit filed in March claims the $1 sale of the Lackawanna Recycling Center was a fraudulent act to avoid civil rights claims concerning inmate labor. Plaintiff Vsevolod Garanin alleges the Lackawanna County Solid Waste Management Authority transferred the property to Lackawanna Recycling Center in June 2022 to hinder creditors, a deed not recorded until September 4, 2024.
Garanin, who has anticipated claims, asserts the transfer was made to defraud creditors. He seeks to void the transfer and place a trust or lien on the property. Service of the lawsuit was recently completed via public notice, giving the recycling center 20 days to respond or face a default judgment.
The case is linked to a pending federal class-action lawsuit. This class action, which a judge allowed to proceed in May, involves claims that inmates were coerced into working at the facility for $5 daily. Garanin has also filed two prior federal lawsuits with similar civil rights allegations regarding inmate labor.
