The trustee in the bankruptcy case of Shilo Sanders has filed a complaint against the former Colorado football star, claiming Sanders violated bankruptcy law by making unauthorized transfers of approximately $250,000.
Sanders, son of Colorado coach Deion Sanders, filed for Chapter 7 bankruptcy in October 2023 in an effort to free himself of more than $11 million in debt.
The trustee in the case, David Wadsworth, filed the complaint against Shilo Sanders on Wednesday, Oct. 22 and is seeking to recover that money and more, which included college income for Sanders from his name, image and likeness (NIL).
The trustee asserted that Sanders violated the automatic stay in the case, which is supposed to prevent him from taking possession of certain assets that become property of the bankruptcy estate after filing a petition for bankruptcy. Before filing for bankruptcy, Sanders entered into NIL contracts through his company called Big 21, LLC.
“The Trustee also asserts a claim for violation of the automatic stay based upon the Debtor’s (Sanders') exercise of control over Defendant Big 21 including its bank account,” says the complaint, obtained by USA TODAY Sports. “After the Petition Date, only the Trustee as the sole member of Defendant Big 21 had the authority to authorize transfers out of Defendant Big 21’s bank account. Nevertheless… the Trustee did not authorize transfers that totaled approximately $250,000.00 out of Defendant Big 21’s bank account after the Petition Date for the benefit of the Debtor.”
