Los Angeles—An attempt by Nicholas Behunin to file for bankruptcy for his two companies, Sealutions LLC and the Grain Collective LLC, has failed, ending another chapter of his years-long campaign to fraudulently extract $25 million from investor Michael Schwab and avoid a trial on Schwab’s claim that he was defrauded by Behunin of $12 million, according to attorneys at the law firm of Allen Matkins.

Behunin had petitioned the U.S. Bankruptcy Court, Central District of California for Chapter 7 bankruptcy, however, he failed to show up at two court hearings and his claims of bankruptcy were dismissed.

Behunin’s filed his bankruptcy petition on the eve a trial set to resolve a cross-complaint by Michael Schwab that alleged Behunin committed fraud to obtain investments and loans made by Schwab in Sealutions and Grain Collective.

Schwab’s cross-complaint also claimed breach of contract, negligent misrepresentation, breach of fiduciary duty, and declaratory relief. Jury trial on Schwab’s cross-complaint is now scheduled to commence March 13, 2023.

This latest development closes another chapter of a years-long legal battle, with Schwab prevailing in every legal contest over Behunin’s protracted campaign to extract money through fraudulent means, according to attorneys at the law firm of Allen Matkins.

In 2017, California Superior Court Judge Michael Johnson ruled in favor of Michael Schwab and companies connected to him, granting Schwab’s request to throw out all causes of action contained in a lawsuit filed by Nicholas Behunin, Sealutions, LLC, and the Grain Collective, LLC, that fabricated allegations against the Schwab family and sought $25 million in damages.

In addition to Michael Schwab and his family, Judge Johnson threw out all claims against Big Sky Venture Capital III LLC, Big Sky Real Estate LLC and Big Sky Venture Capital V LLC.

The court had previously granted requests for summary judgment filed by associates of the Schwabs who were also named in Behunin’s lawsuit as defendants, finding that the “plaintiffs fail to submit evidence that raises triable issues of fact” that support Behunin’s claims against the defendants. Charles R. Schwab, father of Michael Schwab, was previously dropped from all legal actions as well.

“This is a total and complete victory over Nick Behunin and his fraudulent statements and legal attempts to shake down Michael Schwab and his family,” said attorney Robert R. Moore of the law firm Allen Matkins, who along with David Schwartz of the Law Offices of David H. Schwartz, Inc., and Michael Stepanian of the Law Office of Michael Stepanian, represented Michael Schwab, Charles R. Schwab and their investment groups.

The case is Sealutions LLC et al. case number BC546925, in the Superior Court of the State of California for the County of Los Angeles.