Misery Index: Week of May 29, 2017


After Suing City of Costa Mesa, Sober Home Network Goes Bankrupt

Solid Landings Behavioral Health Inc. and 4 affiliate homes sought protection from creditors in the Central District of California Santa Ana. The petition, signed by Chief Restructuring Officer Katie S. Goodman, lists up to $100,000 in assets and an estimated $50 million in liabilities. Located in Manor, Texas, Cedar Creek Recovery Inc. owes $49,966.00 in unpaid rent, Silver Rock Recovery owes $56,637.00 in unpaid rent in Las Vegas, EMS Toxicology owes $937,499.78 to Anthem Blue Cross and Sure Haven Inc owes $469,628.75 to insurer Berkshire Hathaway Homestate Companies. In 2014, Solid Landings challenged Costa Mesa, Calif. laws governing group homes and their proximity to one another.

Read Solid Landings v City of Costa Mesa complaint here 

Sexual Abuse Settlement Leads to Bankruptcy Proceedings

Claiming assets and liabilities up to $10 million, Crosier Fathers of Onamia sought protection from creditors in the District of Minnesota after the religious organization agreed to pay $25.5 million to the child sexual abuse victims of its members and a lay teacher. The Croiser Community of Phoenix also filed a chapter 11 petition, listing $500,000 in liabilities and $10 million in assets, along with the Crosier Fathers and Brothers Province, Inc. There are reportedly 43 sex abuse survivors who have filed complaints against the Crosiers.

Embattled California Realtor Seeks Shelter From Debt

Capitol Station 65 LLC and three affiliates filed for bankruptcy in the Eastern District of California. Each of the four chapter 11 petitions were signed by CEO Suneet Singal, who voluntarily surrendered his license in 2009 after facing accusations by a deputy real estate +commissioner for making false representations pertaining to property in Beverly Hills, Calif. Affiliates include Township Nine Owners LLCCapitol Station Holdings LLC and Capitol Station Member LLC. Court filings claim assets up to $100 million and liabilities up to $50 million, including a money advance in the amount of $1,117,000.00 owed to Nehemiah Community Reinvestment Fund in Sacramento, Calif.

 Read the Calif. Department of Real Estate’s accusation against Mr. Singal here.

 Turn of the Century Social Club Loses its Financial Footing

Founded in 1908, the Pittsburgh Athletic Association and affiliate Pittsburgh Athletic Association Land Co. sought chapter 11 safety in the Western District of Pennsylvania. Signed by President James A. Sheehan, the petition claims up to $10 million in assets and liabilities of which $379,014.88 is owed to the Pittsburgh Building Owners Welfare Fund.

Family Practice Clinic Faces Confronts Legal Wreckage

Facing the wreckage of three lawsuits, Advanced Primary Care, LLC sought chapter 11 protection in the Western District of Tennessee. Signed by chief manager Michael A. Jones, the petition claims up to $50,000 in assets and $10 million in liabilities of which $243,000.00 is owed to the IRS. According to court filings, Barton & Associates, Iberia Bank and Itamar Medical are litigants against the business.

Veteran’s Civic Club Seeks Bankruptcy Shield After Double Shooting

Commander Larry Williams signed off on a chapter 11 petition filed in the District of New Jersey, placing the Levittown Memorial Veterans of Foreign Wars (VFW) Post 4914 in bankruptcy proceedings. Located in Willingboro, N.J., the organization is claiming up to $500,000 in assets and $1 million in liabilities. A Feb. 16 shooting at the VFW social club resulted in the hospitalization of two security guards.

Food Distributor Enters Bankruptcy After Finding Itself in Litigation Jam

Lancaster Fine Foods Inc. and Earth Pride Organics LLC sought protection from creditors in the Eastern District of Pennsylvania, claiming assets and liabilities up to $10 million of which $2.3 million is owed to the Fox Rothschild law firm. The petition was signed by Michael S. Thompson who was named in a lawsuit alleging that Lancaster Fine Foods had stolen a fig jam recipe and used a trademark without consent.

Read the suit against Lancaster Fine Foods here

Moving, Trucking and Storage Companies Pull Into Texas Bankruptcy Court

Escondido Ventures LLC President Barcley Houston filed a chapter 11 petition seeking assistance with up to $10 million in liabilities in the Western District of Texas. Mr. Houston’s affiliated automotive repair, storage and freight trucking companies including Rockey’s Van Lines LLC, Killeen Diesel Service LLC, Rockey’s Moving & Storage, LLC and Centex Moving & Storage LLC, also filed bankruptcy pleadings.

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