President of ACSI, were false.
At trial, Overly made repeated representations to the effect that ACSI was a "sham" corporation and suggested that Guthrie had somehow done something wrong in the operation of the business. The evidence established that ACSI was issued a corporate charter by the State of Florida, that ACSI filed Annual Reports with the Florida Secretary of State and that meetings of shareholders and directors were held on a regular basis.[1] Overly failed to support his claim that ACSI was a "sham" with any evidence. To the contrary, the evidence showed that ACSI's corporate existence was honored and that the corporation was not merely Guthrie's alter ego. Overly's assertion that ACSI was a "sham" is without merit.
Overly's Section 523(a)(2) claim fails at the outset for wantnot $10,000 as indicated in the Schedules. Overly did not offer any independent evidence as to the value of the Guthries' interest in the property. This discrepancy, by itself, is not significant.
The evidence revealed another problem with the pasture land in addition to the discrepancies as to its value or the percentage owned by the Debtors. Prior to the time the Debtors purchased their residence in Arkansas, which was in June of 1999 (approximately one month prior to the date of the petition), they mortgaged the pasture land to secure the indebtedness on the new residence. By mortgaging the pasture land, the Debtors transferred an interest in real estate which should have been disclosed in their answer to Question No. 10 of the Statement of Financial Affairs.[5] The