Jay Z & Dr. Lillie Coley Back In Court? – Coley Files New Jersey Bankruptcy Adversary that Challenges Alleged Fraudulent Transfer Tied to Void Jurisdictional Orders
- Ceo Org
- May 22
- 2 min read
FOR IMMEDIATE RELEASE
Camden, New Jersey — Dr. Lillie M. Coley, a Chapter 7 debtor in the United States Bankruptcy Court for the District of New Jersey, has filed an adversary proceeding docket#26-1210 seeking recovery of approximately $25,177.66 that was disbursed from escrow proceeds during the sale of her New Jersey property. She also has a pending request for Chapter 13.
The complaint alleges that the transfer stemmed from attorney fee judgments and related liens arising out of court proceedings that allegedly lacked both subject-matter jurisdiction and personal jurisdiction from their inception. The adversary proceeding further alleges that sworn jurisdictional representations made during the original family court proceedings were materially false and that those representations ultimately led to years of void proceedings, fee awards, and escrow disbursements tied to the sale of Dr. Coley’s property.
The lawsuit names Shawn Corey Carter, professionally known as Jay-Z, as defendant and seeks avoidance and recovery of the transfer pursuant to 11 U.S.C. §§ 548 and 550 of the Bankruptcy Code.
According to the complaint, the disputed funds were withheld and later disbursed during the December 2023 sale of property located at 630 Erial Road in Blackwood, New Jersey. The complaint alleges the judgments appeared through title and escrow systems despite ongoing disputes concerning jurisdictional validity and enforceability.
Dr. Coley states that the action is not intended to disturb the completed property sale itself, but instead seeks recovery of the monetary transfer allegedly derived from void or unenforceable proceedings.
The complaint further raises broader questions concerning:
the use of allegedly void state court orders in later federal and bankruptcy proceedings;
the impact of disputed judgments on real-property transfers and escrow systems;
whether parties can continue benefiting from orders entered after repeated acknowledgments of jurisdictional defects; and
the effect of contested claims on bankruptcy estates and debtor property rights.
The filing follows the Chapter 7 Trustee’s abandonment of the claim, after which the cause of action reverted to Dr. Coley pursuant to 11 U.S.C. § 554.
Dr. Coley has maintained that the matter presents significant due process and property-rights concerns extending beyond her individual case, particularly where disputed jurisdictional rulings become embedded into financial, escrow, and enforcement systems affecting real property and bankruptcy estates.
The adversary proceeding is pending in the United States Bankruptcy Court for the District of New Jersey in connection with In re Lillie Marie Coley, Case No. 26-1210. Lawsuit here.
Media Contact: FCLU Phila
Shar Handy
Philadelphia, Pennsylvania
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