Beleaguered entrepreneur details assets, debts
A Kennewick businessman’s bankruptcy filing has been updated to detail assets of just under $1 million and debts of $2.7 million in secured and unsecured claims.
Kristopher Lapp, former president of i-3 Global, also reported owing $79,000 in unpaid taxes to the federal government.
Lapp and his company are the target of three lawsuits totaling nearly $2 million. I-3 Global closed its doors and laid off all staff in April. The company that offered technology, multimedia and staffing services to federal and commercial customers was named the U.S. Department of Energy’s Protégé of the Year for fiscal year 2016 and was honored by the Tri-City Regional Chamber of Commerce for achieving significant success.
In recently revised bankruptcy documents, Lapp reported an asset of $850,000 for his Kennewick home on West Payette Avenue, along with a $50,000 Tesla Model S.
He listed no cash and items of only limited value totaling $8,800, including a $500 hot tub, $300 in men’s clothing and $1,500 for furniture, including a sofa, bed and coffee table.
His home was briefly listed for sale in May before it was withdrawn from the market around the time he filed for bankruptcy.
Lapp reported about $75,000 in retirement accounts spread across three 401(k) investments and one individual retirement account.
Former employees, many of whom report they are still owed at least four days’ wages, have filed claims with the state Department of Labor and Industries for potential misappropriation of withholdings after contributions to their own retirement accounts were withheld from paychecks but not invested in their accounts.
All of Lapp’s personal assets, including his home, cellphone, computers, televisions, furniture, retirement accounts and his dog are claimed as exempt from creditors.
There are only two creditors with claims secured with property, which include the companies financing Lapp’s home and car.
Unsecured claims include an $880,000 loan from Columbia State Bank that is part of one of the outstanding lawsuits filed against Lapp and i-3 Global.
The other two lawsuits are included by Lapp as unsecured claims for $472,277 owed to E2 Consulting Engineers and $446,617 intended for Integrated Global Staffing.
Lapp also reported other unsecured claims totaling about $18,000 in credit card debt, $86,453 owed to a subcontractor under the business name E & S Engineering, $143,000 to Fluor Federal Services and $19,418 to a second subcontractor, Opris “Vince” King.
Lapp listed all of these claims as business debts. He reported previous annual income of about $150,000 prior to the bankruptcy filing.
I-3 Global had until mid-June to respond to wage complaints filed with the state Department of Labor and Industries.
The company is also the target of a $44,000 tax warrant filed by state’s Department of Revenue.
Lapp and his bankruptcy attorney did not return requests for comment. He also has placed a restriction on incoming calls to his cellphone. He continues to maintain his social media persona by posting local restaurant reviews.
Lapp remains a member of Richland’s economic development committee, though he is taking leave from serving on the board for the Columbia Basin College Foundation.
The first meeting of creditors is scheduled this month for Lapp’s personal bankruptcy case.
Trial dates for all three lawsuits filed against Lapp and i-3 Global are scheduled to be heard in Benton County Superior Court in spring 2020.