McElroy, Deutsch, Mulvaney & Carpenter has petitioned a U.S. Bankruptcy Court judge to dismiss a Chapter 11 bankruptcy filing submitted by the firm’s former chief financial officer, John Dunlea. Dunlea, who has pleaded guilty to embezzling over $1.5 million from the firm, has been sentenced to five years in prison.
The firm contends that Dunlea’s Chapter 11 petition was brought in bad faith and should therefore be dismissed. In its motion to dismiss, McElroy Deutsch argued that the reorganization effort primarily revolves around a two-party dispute that is more appropriately resolved in state court. Additionally, given Dunlea’s current incarceration, the firm asserts that he has “no reasonable expectation of timely or adequately funding any plan of reorganization.”
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