Co-founder Greg Conigliaro, Lisa Cadden's brother, received about $1.6 million. Carla Conigliaro, recipient of the $8.7 million payment, is the wife of Doug Conigliaro, Greg's and Lisa's brother.
The filing also shows more than $90,000 in purchases on a company American Express card by Barry and Lisa Cadden and Carla Conigliaro. The three kept using the card after the company shut down in early October, though less frequently and mainly for expenses such as gas, parking or food at stores including Panera Bread.
The firm now lists assets of about $1.6 million and liabilities of $885,000 from its unsecured creditors, not including any court judgments against it.
In its initial bankruptcy filing in December, the firm reported that 130 people had filed lawsuits, and it has told attorneys that it won't have sufficient funds to adequately compensate victims. The company said the purpose of its Chapter 11 filing was to set up a fund to fairly pay victims.
A hearing is scheduled Thursday in U.S. Bankruptcy Court in Springfield on a request for an independent trustee to replace an accountant hired by the NECC to lead it through Chapter 11 proceedings.
On Tuesday, the creditors represented by Brown Rudnick backed the request in a court filing, saying it's "beyond all reasonable expectations of the human condition" for people whose family members have died due to an NECC-made drug to trust its hand-picked choice to set up the compensation fund.
The company has said appointing an independent trustee would delay progress toward establishing the fund.
Cut pounds of stomach fat every week by using this 1 weird old tip.