Orlando food truck manufacturer that filed for bankruptcy may have taken customers funds overseas
ORLANDO, Fla. - People all across the country are waiting with bated breath to see whether they’ll get their money back from a company that took their cash but never delivered.
One Fat Frog in Orlando promised to make food trucks or trailers for people all over the country. After years with no answers, customers found out One Fat Frog filed for bankruptcy. Now, customers wonder whether their money has gone down the drain.
The bankruptcy trustee ordered by a judge to take the company over, Todd Budgen, says he has reason to believe $12 million associated with the company "has left the country" and is possibly in the Middle East.
The judge says they may have to pursue litigation against "bad actors, or folks who have wrongfully taken these funds" in order to get people their money back. But she says that will be a difficult path.
Budgen is still considering how to move forward and what type of bankruptcy to pursue. They could continue with Sub Chapter 5, Chapter 7, or chapter 11. He says an auctioneer could sell off some of the material from inside the facility by mid-September.
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The judge believes liquidation may be the most likely route, but says selling things off is not in the best interest of creditors, because the amount of money they’d get back would be minimal. But a potential buyer the bankruptcy trustee could not show proof of funds, and the judge does not expect that to materialize.
"I understand that a lot of people have been harmed - have been harmed considerably," said Judge Lori Vaughan. "I know it’s very tragic what has happened, and we’re attempting to get to the bottom of it."
It isn’t just individuals who have a stake in this. Companies like Hidden Table Catering, New Tech Small Business, and more attended Wednesday’s status hearing as well, hoping to be reimbursed.
Budgen says many people were told their food trucks or trailers were in progress. He says at One Fat Frog’s facility, there are only 15 vehicles on site; only one is complete. Customers who never received their food trucks have given $18 million to this company. The bankruptcy Trustee estimates it would cost $1.8 million to finish the 600-700 outstanding projects.
"You’re probably not going to get paid back your money in full," the judge added. "But we are going to do our best."
The judge has asked Budgen to stay on, continuing to seek a way to get some money back for victims.