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Erik Ahlgren, a advocate from Fergus Falls, Minn., the court-appointed defalcation trustee in the McM Inc. case, in a complaint filed May 3 in Fargo, alleges the parents of arch Ron McMartin Jr. were complex in a “scheme to move” the acreage assets to a “safe haven” from creditors for the account of their son, and not his creditors.



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McM Inc. was a high-value crop acreage operated by Ron McMartin Jr., of St. Thomas, N.D., and filed Chapter 7 defalcation on Feb. 10, 2017. The farm, one that grew up to 50,000 acres, formed up $62 actor in creditor claims, including $43 actor to operating accommodation broker BMO Harris Coffer N.A.



Ahlgren alleges that Ron McMartin Sr. and his wife, Bonita A. “Bonnie” McMartin, were complex in abnormal transfers accretion about $2 million. Ahlgren wants the cloister to adjustment those transfers abandoned and the money alternate to the creditors. The transfers are declared as civilian “fraud,” but no bent accuse accept been filed. No acknowledgment was yet filed in the antagonist case adjoin the parents.

One of the declared primary alteration involves money to the Island Basin Irrevocable Trust.



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On about June 6, 2011, McM Inc. purchased a basin abode at 41106 County Rd. 126, Detroit Lakes, Minn., and paid $1.3 actor for it. Ron Sr. “lent” McM the bulk of $318,000 in a transaction that came aback to himself four canicule later.

First Security Coffer Minnesota captivated a aboriginal mortgage on the Island Basin property.

On March 24, 2015, McM transferred the Island Basin Acreage to the Island Basin Irrevocable Trust, for the account of McMartin Jr.’s daughters. On March 25, 2015, a archetype of the assurance certificate was recorded in Becker County, Minn. On March 28, 2015, the parties registered a new mortgage with a mortgage aggregation in Becker County advertence a “balance due” of $946,000.The parties filed a abdicate affirmation accomplishment of $1.26 million. From the total, they subtracted $946,000, for a aberration of $319,000.

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“Since this was a adulterated transaction (McM) had no ambition of accepting absolute acquittal for its disinterestedness in the Island Basin Acreage from the ILI Trust,” Ahlgren alleges. “Therefore, in adjustment to accomplish the auction arise to be an arms-length transaction at fair bazaar bulk (McM) and the ILI Assurance created the actualization of value, to annular out an barter of funds,” Ahlgren writes.

Among added allegations, Ahlgren says:

Conversely, allowances by the parents for not advantageous for agronomical casework are estimated by the trustee to be added than $1 million.

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Still added allegedly abnormal aberration of assets to the parents include:

Despite the transfers, McM’s anniversary account in 2016 included a “balance due” from his ancestor of $220,000. “The best transfers enabled (the parents) to balance added than they would accept accustomed as creditors in this Chapter 7 case,” he says.

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