Federal Trial Began in EPIC Companies Loan Dispute
A federal jury is considering claims involving $897,000 in defaulted loans tied to EPIC Companies Midwest.
Updated on Oct. 6, 2026 in Financial Crime
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A federal jury trial has commenced in Fargo regarding $897,000 in loan disputes involving the bankrupt developer EPIC Companies Midwest. The Liquidating Trust is seeking to recover funds for creditors by challenging various loan transfers as fraudulent.
Why it matters
The outcome of this trial determines whether the Liquidating Trust can successfully claw back assets to repay creditors following the company's Chapter 11 bankruptcy filing. It centers on allegations that EPIC Companies and EOLA Capital were insolvent when the disputed loans were executed.
The federal jury trial currently underway before Judge Peter Welte covers an aggregate of $897,000 in disputed debt. This follows the June 2025 court decision to convert the EPIC Companies bankruptcy from a reorganization plan into a liquidation.
The players
EPIC Companies Midwest
This is a real estate development firm that filed for Chapter 11 bankruptcy after facing financial struggles and layoffs.
Judge Peter Welte
He is the federal judge presiding over the bankruptcy court proceedings and the current jury trial in Fargo.
Lighthouse Management Group
This organization oversees the Liquidating Trust created to recover funds and distribute them to bankruptcy creditors.
Todd Berning
He is a central figure in the firm who has been under investigation by the North Dakota Securities Department.
North Dakota Securities Department
This state agency initiated an investigation into the company's financial practices in May 2024.
The details
The lawsuit alleges that HI West Acres defaulted on a $785,000 promissory note and failed to repay $50,000 on a separate $275,000 loan from EOLA Capital. Prosecutors and the Liquidating Trust argue these transfers were made when the firms were already facing insolvency.
Timeline
May 2024: North Dakota Securities Department began investigating the company and Todd Berning.
July 8, 2024: EPIC Companies and affiliated entities filed for Chapter 11 bankruptcy.
June 2025: The court converted the case to liquidation and established a Liquidating Trust.
October 6, 2026: The federal jury trial began in bankruptcy court.
Legal Context
This trial follows the pattern set by the Chapter 11 bankruptcy of EPIC Companies Midwest regarding asset recovery efforts. It represents a common trajectory in complex corporate insolvencies where liquidating trusts pursue civil litigation to reclaim funds for creditors.
The ongoing trial marks a significant step in the liquidation process for local creditors and investors impacted by the company's collapse. Residents and business owners in the area should monitor these proceedings for updates on potential fund distributions.
The takeaway
This case highlights the complexities of bankruptcy liquidation when developers face multiple overlapping debt disputes. Creditors must often wait through lengthy federal litigation before any final determinations on asset recovery are made.
Further reading
For additional context, visit the Financial Crime section.
Source note: This article includes information reported by Valleynewslive.
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