Bankruptcy judge rules against Shilo Sanders, denying his bid to dismiss a trustee's lawsuit alleging unauthorized transfers of $250,000. The Colorado trustee accused Sanders, 26, of siphoning funds from his Big 21 and Headache Gang ventures, which generated income from his name, image, and likeness (NIL).

Sanders’ attorney argued the money was post-petition earnings, but Judge Michael Romero ruled the case proceeds to trial. The trustee seeks to recover assets for Sanders’ creditors, while a separate August 31 trial will address whether his $11.89 million debt to John Darjean—stemming from a 2022 civil judgment—can be discharged.