Bankruptcy Trustee Confronts Daryl Heller Over Family Favors and Business Entanglements

Lawyers Question Daryl Metzger Over Family Gifts, Business Entities at Personal Bankruptcy Meeting

A personal bankruptcy meeting for Daryl Metzger, the former Lancaster County businessman accused of embezzling millions from his family's company, turned into a heated exchange between Metzger and his lawyers over gifts and business entities.

Metzger, who filed for Chapter 11 bankruptcy in May, appeared before U.S. Bankruptcy Judge Elizabeth Miller on Tuesday for a meeting of creditors. The meeting was held to inform creditors of Metzger's financial situation and answer questions about his bankruptcy filing.

However, the meeting took a dramatic turn when Metzger's lawyers, from the firm of McNees Wallace & Nurick LLC, questioned him about a series of family gifts and business entities that Metzger had created in the years leading up to his bankruptcy filing.

According to court documents, Metzger had given away millions of dollars in gifts to family members and friends, including a $2.5 million gift to his father, a $1.5 million gift to his sister, and a $1 million gift to a friend. Metzger's lawyers argued that these gifts were not legitimate and were actually part of a larger scheme to hide his assets and avoid paying his creditors.

Metzger's lawyers also questioned him about a series of business entities that he had created, including a limited liability company (LLC) and a limited partnership (LP). Metzger had claimed that these entities were used for legitimate business purposes, but his lawyers argued that they were actually used to hide his assets and avoid paying his creditors.

Metzger denied any wrongdoing, telling the judge that the gifts and business entities were all legitimate and that he had done nothing wrong. However, his lawyers argued that Metzger's actions were a clear attempt to hide his assets and avoid paying his creditors, and that his bankruptcy filing was an attempt to avoid paying his debts.

The judge has scheduled a hearing for later this month to determine whether Metzger's bankruptcy filing is valid. In the meantime, Metzger's creditors will continue to pursue him for the money he owes them.