Trustee seeks bank account info in Peak Serum/Kutrubes bankruptcies

FORT COLLINS — A dispute between two companies that sell fetal bovine serum used in medical research continues in U.S. Bankruptcy Court, with the court-appointed Chapter 7 trustee receiving authorization to examine bank accounts held by a third serum company.

The case involves Peak Serum Inc., founded by Thomas Kutrubes. Kutrubes had been employed by Atlas Biologicals Inc. While still an employee, he founded Peak Serum and began to compete against his employer, according to allegations at the time. Both are Fort Collins companies.

Atlas filed a lawsuit and won a $2.05 million judgment, which was upheld on appeal.

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Unable to pay the judgment, Peak Serum filed for Chapter 11 bankruptcy protection. Atlas filed an adversarial case seeking to prevent the discharge of the court-ordered debt. The Chapter 11 case was converted to a Chapter 7 liquidation in August last year; the case has yet to be resolved.

Kutrubes filed for personal bankruptcy protection as well, and again Atlas is seeking to prevent the discharge of the debt. Kutrubes, through his attorney, Aaron Garber of Wadsworth Garber Warner and Conrardy PC, said in an answer to Atlas’ complaint that “the debtor did not commit an intentional wrong” and thus should be able to discharge the debt in bankruptcy.

Bankruptcy judge Joseph Rosania ordered on Feb. 2, 2024, that the parties attempt a settlement and report back to him by March 18. 

Meanwhile, Chapter 7 trustee Joli Lofstedt in the personal bankruptcy action asked the judge for authorization to seek information about bank accounts and a retirement account to determine sources of money.

As she described it, Kutrubes was an employee of Peak Serum until December 2022 when he resigned. On Dec. 13, 2022, Kutrubes’ wife, Carla Kutrubes, formed a new company called SeraPrime LLC. SeraPrime also is engaged in the sale of fetal bovine serum for research purposes. Thomas Kutrubes is now an employee of SeraPrime.

Formation of the new company was funded with a $45,000 deposit — a check written by Carla Kutrubes on a JPMorgan Chase Bank N.A. account, which was deposited in a FirstBank account, the trustee alleged in her court filing.

Lofstedt cited an email between Carla Kutrubes and BioWest USA Inc., a company that did business with Peak Serum, seeking a business relationship with the new company. Carla Kutrubes advised BioWest that it could work directly with “Tom.” 

BioWest transferred “at least $243,163.65 to SeraPrime,” Lofstedt said.

Also, Carla Kutrubes opened an investment account with Fidelity Investments and funded it in April 2023 with $66,048, Lofstedt said in her filing with the court. Source of that money was not apparent.

The trustee sought information on all of those transactions and the ownership of SeraPrime.

The court issued subpoenas to the banks and the investment firm in search of information, which was to be produced by March 1.

A call to Kutrubes’ attorney Garber was not returned prior to publication time.

The bankruptcy case is No. 20-18219 filed in U.S. Bankruptcy Court in Denver. The adversarial case filed within that action is Atlas Biologicals Inc. vs. Thomas Kutrubes.