Aquent, LLC v. Robinson

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UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
In re
CRAIG TAYLOR ROBINSON, 	No. 10-11858
Debtor(s).
______________________________________/
AQUENT, LLC,
Plaintiff(s),
v. 	A.P. No. 10-1109
CRAIG TAYLOR ROBINSON,
Defendant(s).
_______________________________________/
Memorandum After Trial
_________________
The evidence presented at trial established that plaintiff Aquent, LLC, was the victim of a
fraudulent scheme arising out of its role as a factor of the receivables of Allied Solutions Group, Inc.
The scheme involved false invoices and fictitious receivables.
Defendant Craig Robinson was the president and sole shareholder of Allied. Following a
judgment in favor of Aquent in the sum of $11.1 million against him and others entered in federal
district court in Ohio, Robinson filed a Chapter 7 petition in this court. Aquent seeks a determination
that the judgment is nondischargeable pursuant to § 523(a)(2) of the Bankruptcy Code.
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Entered on Docket
May 18, 2011
GLORIA L. FRANKLIN, CLERK
U.S BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
Case: 10-01109 Doc# 13 Filed: 05/18/11 Entered: 05/18/11 15:24:10 Page 1 of 2

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The evidence proved numerous false statements made to employees of Aquent by Robinson by
both telephone and email. Rather than answer the questions put to him, Robinson repeatedly invoked
his right against self-incrimination. Most tellingly, he never denied that he made the statements or sent
the emails.
Robinson asserts, without authority, that the court cannot draw adverse inferences from his
refusal to answer the many questions Aquent’s counsel put to him regarding his conduct. However,
the law is quite the contrary. The Fifth Amendment does not forbid adverse inferences against parties
to civil proceedings when they refuse to testify in response to probative evidence offered against them.
Baxter v. Palmigiano, 425 U.S. 308, 318, 96 S.Ct. 1551, 1558, 47 L.Ed.2d 810 (1976). In fact, such
refusal may be evidence of the most persuasive character. Id. at 319.
The court accordingly has no difficulty finding that Robinson was an active and knowing
participant in the scheme and made numerous knowingly false statements to Aquent with the intent to
induce Aquent to pay money to Allied based on false invoices. Aquent relied reasonably and
justifiably on these false statements and suffered many millions of dollars in damages as a result.
Accordingly, the judgment which Aquent obtained against Robinson in district court is
nondischargeable pursuant to § 523(a)(2) of the Bankruptcy Code.
This memorandum, as well as the statements made by the court on the record at the conclusion
of the trial, constitute the court’s findings and conclusions pursuant to FRCP 52(a) and FRBP 7052.
Counsel for Aquent shall submit an appropriate form of judgment forthwith.
Dated: May 18, 2011
SAlan Jaroslovsky
U.S. Bankruptcy Judge
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Case: 10-01109 Doc# 13 Filed: 05/18/11 Entered: 05/18/11 15:24:10 Page 2 of 2