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Service dog settlement proposed

Service dog settlement proposed

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A settlement may soon be approved in the bankruptcy case involving Service Dogs by Warren Retrievers owner Charles “Dan” Warren.

Last month, trustee for the bankruptcy estate Stephen Scott filed a motion seeking the approval of a global resolution in the case. The resolution would transfer Warren’s 158-acre Bordeaux Farms on Beahm Town Road in Madison County to the estate, allowing its sale to occur for the benefit of unsecured debtors, many of whom are families who fell victim to Warren’s service dog schemes. The property was listed for sale for just under $1.5 million. To protect it from being sold, Scott placed a lien on the property. There is also a lien of $60,000 on the property from Richmond-based law firm Spotts Fain, PC. In addition, a $600,000 credit line was taken out to benefit Warren’s mother, Marianne Warren.

Under Scott’s global resolution, the estate would be sold for $1.225 million, the price listed in a contract of sale that occurred in Dec. 2020, but has yet to close due to the ongoing legal matters. From the sale, the Spotts Fain lien would be paid, as well as the broker’s 6% commission and any other taxes and closing costs. Approximately $400,000 would go to Marianne Warren to clear the credit line burden. The remaining 32% or approximately $300,000 from the sale would be paid out to unsecured debtors—the families who received inadequate, or didn’t receive at all, service dogs.

In return, Dan Warren, Bordeaux Farms, Charitable Occasion (Warren’s other nonprofit entity), Jacob M. Dudek-Warren and Marianne Warren would be waived from any further legal action pertaining to the bankruptcy case and it would be considered closed.

In his filing, Scott said the settlement is in the best interest of the creditors and the estate. He said it allows for a meaningful distribution to creditors, many of whom are individuals and families.

However, many of those individuals and families disagree. As of Monday, 23 individuals had filed objections to the settlement. Many of them stated that Marianne and Dan are still close and any money that goes to her will likely be rerouted back to Dan Warren. A petition in opposition of the settlement was also submitted with 339 signatures, many from people who never received a dog, received an inadequate dog, donated toward someone receiving a dog and more.

The case is set for a hearing June 3.

Meanwhile, the Attorney General’s case against Service Dogs by Warren Retrievers is due back in Madison County Circuit Court later this month.

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