United Sporting’s Creditors Seek Probe of Fraud Allegations

Some creditors of United Sporting Companies are seeking court approval to investigate fraudulent transfer allegations facing the bankrupt gun-seller’s leaders and its majority owner.

A probe could unearth claims for “hundreds of millions of dollars” in recovery, according to discovery requests filed July 26 by United Sporting’s official committee of unsecured creditors.

The requests come after Prospect Capital Corp., a lender and a holder of a 21.6% equity stake in United Sporting, sued United’s majority owner, Wellspring Capital Management LLC, and several individuals in May. Prospect said the defendants, including United’s officers and directors, “coerced” United to make “massive cash ...