This week Judge Jacqueline Cox of the U.S. Bankruptcy Court for the Northern District of Illinois rendered her decision on the Defendant's, Republic Windows and Doors, LLC, motion to dismiss the bankruptcy trustee's first amended complaint.
You may remember Republic Windows and Doors as the company that bilked millions from the City of Chicago in TIF funding only to lay off all of its workers while still owing them over $150,000 in back pay. Furthermore, criminal charges were filed against a former CEO of the company.
The trustee is alleging a series of fraudulent and insider actions, including complex restructuring and sham corporations, that bilked Republic Windows of its assets.
Judge Cox granted and denied in part the Defendant's motion to dismiss. Four counts of the complaint relating to fraudulent transfers were dismissed on the grounds that the statute of limitations period (four years) had run. However, the judge opened the door for the complaint to be amended stating that a longer 10 year limitations for IRS claims may be exploited, but that "The generous IRS limitation provision is not available unless the IRS files its own claim or the Trustee files a claim on behalf of the IRS."
This is a real case of corporate greed gone awry. Stay tuned for more details.
The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.
