Unalaska, AK – Kjetil Solberg, the former owner of Adak Fisheries, has denied charges that he fraudulently transferred over $400,000 from the company.

Court documents obtained by Wesley Loy on Monday showed that the trustee of Adak Fisheries filed a lawsuit against Solberg on the grounds that company money had been personally transferred to Solberg after the company was already insolvent.

The complaint was filed in April by Anchorage attorney Erik LeRoy, on behalf of Adak Fisheries trustee Kenneth Battley. The complaint charges that over $115,000 was transferred from the company to Kjetil Solberg's ex-wife Ricky for child support, credit card payments, and a property settlement. The complaint also states that Solberg used over $26,000 of this money to make a mortgage payment on one of his properties. All of the transfers listed in the complaint were made between November 2008 and August 2009. Adak Fisheries filed for bankruptcy in September of 2009. A financial statement from the company showed it had only $20,000 in cash on hand and had debts in the amount of $2 million in December of 2008.

Yesterday, Solberg, who is representing himself, responded to a court summons and denied the charges. Solberg, who is currently working in Panama, refutes that the Alaska District bankruptcy court has jurisdiction over him. He also disagrees that the company was insolvent when the transfers were made and states that the transfers were made in lieu of salary. He accuses LeRoy of selectively picking from Adak fisheries financial statements, and claims that Adak Fisheries was not insolvent the whole year prior to declaring bankruptcy.

"Everybody that runs a business knows that cash flow comes and go. After that date in November 2008, millions of dollars flew through that account," says Solberg. "But he just picked this date because he wants to open a window where he can start adding expenses to me. He could have just called me and asked, and he would have gotten the explanation that he need."

Solberg says that the transfers were the mostly the result of unorthodox accounting. He says that he often made company purchases on his personal credit card and that Adak Fisheries' chief financial officer would reimburse him using the company's account at Independence Bank. Solberg also says that his previous salary of $300,000 was not being paid to him, and that transfers were meant to compensate for that.

"The way it worked was that because the company didn't have a credit card, my CFO and my bookkeepers were using my credit card to book travel for people," says Solberg.

Battley could not be reached available for comment.