Bankruptcy Trustee Sues Shilo Sanders Over Unauthorized $250K Transfers

Shilo Sanders, son of NFL coach Deion Sanders and former Colorado Buffaloes player, is embroiled in legal and financial troubles related to his 2023 Chapter 7 bankruptcy filing, which was aimed at addressing an $11.89 million judgment from an assault lawsuit. A bankruptcy trustee, David Wadsworth, filed a complaint accusing Sanders of making unauthorized transfers totaling approximately $250,000 from the bank account of his company, Big 21 LLC, which became part of the bankruptcy estate, thereby violating the automatic stay that prohibits such actions without trustee approval. Additionally, the trustee seeks to recover nearly $203,000 in funds received through another company, Headache Gang LLC, linked to Sanders' NIL (Name, Image, and Likeness) contracts, alleging these earnings were not properly disclosed and were moved to conceal assets from creditors. The complaint characterizes Sanders' transfers as fraudulent attempts to hide assets from creditors and alleges a pattern of concealment that could lead to reversal of transfers or denial of bankruptcy protections. This ongoing legal battle intensifies scrutiny on Sanders' financial integrity and eligibility, highlighting the serious challenges he faces off the field amid his current free-agent status after being waived by the Tampa Bay Buccaneers. The trustee's lawsuit underscores the complexities of bankruptcy law enforcement in the context of athletes' NIL earnings and business dealings.