The branch of the Department of Justice that polices bankruptcy cases is taking action against a Weymouth home improvement contractor who abruptly shuttered his business last year, leaving customers with a trail of unfinished projects.
According to a recent complaint filed in federal court, the U.S. Trustee is objecting to the discharge of Liam McNeil's debts. McNeil is a licensed nurse practitioner who had been moonlighting as a contractor running LHS Construction.
As we reported in April, customers accuse McNeil of accepting hundreds of thousands of dollars in payments, and then trying to get the debts on the unfinished projects wiped away by bankruptcy.
Some of the alleged victims even include doctors and nurses who worked with McNeil.
During the initial bankruptcy proceedings, McNeil struggled to provide specifics about how he spent customer funds. As we reported, the U.S. Trustee later ordered a list of financial records and deposed McNeil and his wife.
It is now clear that the U.S. Trustee was not satisfied with the answers the agency received from the contractor.
"The allegations that are lodged in the complaint, in my opinion, are pretty serious," said Joshua Burnett, a bankruptcy attorney who is not involved in the case.
According to court documents, the allegations against McNeil include not disclosing bank accounts, not disclosing a transfer of money to his wife, and making false oaths on his bankruptcy filings.
The complaint also alleges that McNeil did not have records showing how his business brought in $2 million in revenue in 2023, yet the contractor claimed a loss on his tax returns.
"If you can't explain how you supposedly made a lot of money and then lost all of it, you can't explain where the money is and where the money should be," Burnett explained.
McNeil and his attorney, Marques Lipton, have not responded to our questions about the U.S. Trustee’s complaint. Lipton previously told us that his client was fully cooperating with the agency’s requests for financial documents.
When we caught up to McNeil in April to get an explanation, he remained vague about what went wrong.
"I feel horrible about the whole thing. It's not why I started a business," McNeil said. "Just way in over my head, really. Just wasn’t good at it."
We later discovered how McNeil’s father had an extremely similar scenario play out when he operated a contracting business while working as a Randolph firefighter.
Desa Vazquez just moved into her new home in Mansfield about six months behind schedule.
Vazquez, a mom of three kids, had hired McNeil for the construction project and paid him $40,000 to clear the land and pour the foundation.
However, after chopping down a few trees, the contractor said he was filing for bankruptcy and that her money was gone.
"We're still recovering," Vazquez said. "We had to make some sacrifices in the build. It's going to take a lot of time to recuperate that money."
Vazquez first reached out to us because she knew there were other customers trying to dig out of a financial hole.
If McNeil's bankruptcy is denied, it means that Vazquez and other customers could still pursue the money that they’re owed.
Given the latest developments with the U.S. Trustee, she feels validated that she didn't give up and take the loss.
"We really appreciate all the work you did with your investigation," Vazquez said. "I truly, truly am grateful."
Ryan Kath can be reached at ryan.kath@nbcuni.com. You can follow him on Twitter or on Instagram.
