Lol Dave. He’s already admitted the LLC is insolvent. By distributing the physical assets to unsecured creditors who request those deposits back on a “first come, first served” basis, he is favoring one creditor over another. If the LLC then files bankruptcy, or a creditor forces the LLC into it, the trustee will have the power to demand return of those assets, in order to fairly distribute them.

I don’t think there is any intentional fraud here. There were unforeseen circumstances (the move from the Rio). Don’t fault him for going to Fiji. It’s one of my favorite countries, and is about half the cost of going to Hawaii.