Victims in Herrington Lake boat crash file second lawsuit alleging fraudulent asset transfers
MERCER COUNTY, Ky. (ABC 36 NEWS NOW) – Victims injured in the July 4 boating crash on Herrington Lake have filed a new lawsuit against Cody Casey and his brother, alleging Casey transferred assets in an effort to shield them from potential civil judgments.
The lawsuit, filed Monday in Mercer Circuit Court, stems from an earlier civil case brought by families who were injured when a boat allegedly operated by Casey struck a stationary pontoon boat on Herrington Lake. The plaintiffs claim they have claims against Casey arising from the crash and are therefore creditors under Kentucky law.
According to the complaint, Casey was operating a 2017 Axis watercraft on the lake on July 4. The lawsuit states he was driving recklessly, performing “donuts” and other erratic maneuvers before his boat allegedly crashed head-on into a pontoon carrying the plaintiffs. The filing also repeats allegations that Casey left the scene without rendering aid to those who were injured.
The new lawsuit focuses not on the crash itself, but on what happened in the days afterward. Plaintiffs allege Casey transferred several vehicles to his brother, Jesse Casey, on July 10, just days after the collision. The complaint claims the transfers were made without receiving fair value and were intended to hinder, delay or defraud victims seeking compensation through the courts.
Attorneys for the plaintiffs argue several factors point to fraudulent transfers, including that the assets were transferred to a relative, that Casey allegedly retained control of the assets, and that the transfers occurred after litigation was threatened or pending. The lawsuit also alleges the transfers left Casey insolvent or otherwise unable to satisfy potential judgments.
The suit brings claims of actual fraud, constructive fraud and civil conspiracy against both Cody and Jesse Casey. Plaintiffs allege the brothers worked together to move assets beyond the reach of creditors.
The plaintiffs are asking the court to void the transfers, prevent any additional sale or transfer of the assets, appoint a receiver if necessary, award damages and hold both brothers liable for losses related to the alleged scheme.
The underlying personal injury lawsuit against Cody Casey remains pending in Mercer Circuit Court.
