Order of Child Protection Renewed 

Circuit court renewed a child protection order. Appellant challenged judgment for lack of substantial evidence to support a finding, that the order’s expiration would endanger the child. Even if appellant were right, reversal would still not be necessary, because no such finding is necessary to the judgment. Statutes governing child protection statutes are clear as to the elements for an ex parte order and the elements for renewing a full order. “The former explicitly requires a finding of “[a]n immediate and present danger of domestic violence” and the latter clearly, plainly, and unambiguously does not. Judgment affirmed in Missouri Court of Appeals, Southern District – SD37047.

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Registration Is Perpetual 

Missouri statutes require registration if registration was ever required under United States statutes, which require registration for anyone convicted of any offense involving sexual contact with a minor, which includes appellant. Reducing the time on the registry was possible under the United States statutes but not under Missouri statutes. “Even if an offender is eligible for removal under [United States and Missouri statutes], they will still be . . . required to register pursuant to [Missouri statutes] for their lifetime.” Court of Appeals affirms the circuit court’s judgment denying a declaratory judgment in appellant’s favor. 
Missouri Court of Appeals, Western District – WD84739

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Kansas Corporations Law Applied 

Kansas statute governing Kansas corporations specifically applies to dissolutions voluntary and involuntary. Kansas statute governing re-instatement of corporate existence restores claims held as of dissolution but not claims arising during dissolution.  Therefore, appellant Kansas corporation had no authority to pursue a claim against respondent according to Missouri Court of Appeals, Western District – WD84407.

Kansas City Chrome Shop, Inc. vs. Patsy G. Smith, Personal Representative 

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No Appeal from Default Judgment 

Appellant did not appeal the denial of appellant’s motion to set aside the default judgment and only appealed the default judgment. A default judgment is subject to appeal only on subject matter jurisdiction, and appellant challenged only personal jurisdiction and circuit court authority. Appeal dismissed in Missouri Court of Appeals, Eastern District – ED110006.

Tabatha Moore, Respondent, vs. Dennis Crocker and One Stop Muffler, Appellants. 

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Disbarred Lawyer Mitchell Kossoff Sentenced to 13.5 Years for Defrauding Clients

Disbarred lawyer Mitchell Kossoff — who represented many multifamily landlords in New York City — was sentenced to up to 13.5 years behind bars after he pleaded guilty to swindling his clients out of more than $14.6 million, Commercial Observer reported. A judge sentenced Kossoff to between 4.5 to 13.5 years in prison for three counts of grand larceny and one count of scheme to defraud after he used funds stolen from his clients’ escrow accounts to fund his lifestyle expenses, according to Manhattan District Attorney Alvin Bragg. In addition to his prison sentence, Kossoff will be required to pay back the $14.6 million and surrender a condominium in Highlands, N.J.

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Georgia Insurance Owner Sentenced for Bankruptcy Violations

A Georgia insurance company owner has been sentenced to eight months in prison after prosecutors said he lied in bankruptcy court and on his federal tax returns. Jacques Andres Frym, who owned businesses in the Savannah, Ga., area, pleaded guilty last year to lying under oath about his income. Frym at one time owned Federal Employee Benefits LLC, an insurance company, along with real estate and other interests, federal court records show. In 2016, Frym filed for chapter 11 bankruptcy protection to manage more than $5 million in debt. However, he falsely testified that he performed no work for and had no income from Federal Employee Benefits, according to the charging information sheet. Court records show that he also understated his income on his 2017 tax return. Frym, in addition to jail time, must also pay $112,000 in restitution and a $30,000 fine.

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Missouri Trucking Company Files for Bankruptcy After USPS Cuts Back Mail-Hauling Contracts

A Missouri-based trucking company that contracted with the US Postal Service to transport mail recently ceased operations and filed for Chapter 7 bankruptcy, according to Freight Waves. Rooney Trucking Inc., a family-owned company based in Polo, MO, filed its petition in the US Bankruptcy Court for the Western District of Missouri. Attorney Ryan Blay told FreightWaves that “fuel and labor expenses were certainly issues that affected Rooney Trucking Inc.” “The bigger issue, though, was the decision by the U.S. Postal Service to take away some routes and cancel certain contracts,” Blay said. “The business couldn’t function profitably with a restricted income stream. This was the biggest factor in deciding to declare bankruptcy for the company.” In its filing, the trucking company states that it will be unable to fulfill its 14-month contract to haul U.S. mail within a 150-mile radius of Kansas City, Missouri, “due to expected loss of staff as a result of bankruptcy filing and prior cuts to service from USPS.”

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Peloton Losses Mount as Falling Sales, Excess Inventory Slow Turnaround

Peloton Interactive Inc. reported declining sales and growing losses as the stationary-bike maker struggles with weakening demand as Americans return to their pre-pandemic lifestyles. The connected-fitness equipment maker said it received $750 million in financing from banks to help pay for a turnaround as the company is running out of cash. Peloton reported a loss of $757.1 million for the quarter ended March 31, which the company attributed to weak demand and the cost of holding inventory of unsold bikes and treadmills. The company had a quarterly loss of $8.6 million a year ago. Revenue declined 24% in the quarter, Peloton’s first year-over-year downturn since becoming a publicly traded company in 2019. Subscriber growth stood at 6% with a more than four-fold increase amid of the pandemic and the company said it saw a modest number of cancellations after moving to increase the subscription fee. Peloton said last month that it would cut prices on its stationary bikes and treadmills and increase monthly subscriptions for online exercise classes beginning June 1.

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Former Accounting Supervisor Pleads Guilty To Embezzling Funds From Johnson Co. District Court

A Kansas woman pleaded guilty to federal charges of wire fraud and filing a false tax return related to a scheme to embezzle money from the Johnson County District Court in Olathe, Kansas. Court documents indicate that Dawna Kellogg stole at least $776,691.50 in cash while employed in the accounting department at the Johnson County District Court. As the Accounting Supervisor for the Court, Kellogg managed the accounting department, collected funds from each separate county system, recorded funds collected, processed daily reports, and deposited the collected funds into the Court’s bank account. The Court utilized a case management system named the Justice Information Management System (JIMS), which had an accounting function to maintain the Court’s financial transactions.

Kellogg stole cash that the Court received, such as bail bond payments, and either spent or deposited the embezzled proceeds into her personal accounts. Kellogg concealed the stolen cash by two primary means: (1) manipulating an unclaimed property account and (2) creating an open payable in the JIMS system and then issuing a check that was both drawn on and deposited into the Court’s bank account, which created a corresponding debit and credit and thus no increase or decrease in the amount under deposit.

Kellogg pleaded guilty to one count of wire fraud and one count of subscribing to a false tax return. As part of her plea agreement, Kellogg agreed to not contest that the total loss resulting from the scheme to defraud was $1,135,988.13, which consists of $359,296.63 from 2007 through 2009 and $776,691.50 from 2010 through June 2017.  Sentencing is scheduled for August.

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IRS reminds employers of penalty relief related to claims for the Employee Retention Credit

Courtesy of the Internal Revenue Service

The Department of the Treasury and the Internal Revenue Service have received requests from taxpayers and their advisors for relief from penalties arising when additional income tax is owed because the deduction for qualified wages is reduced by the amount of a retroactively claimed employee retention tax credit (ERTC), but the taxpayer is unable to pay the additional income tax because the ERTC refund payment has not yet been received.

Treasury and the IRS are aware that this situation may arise, in part, due to the IRS’s backlog in processing adjusted employment tax returns (e.g., Form 941-X) on which the taxpayers claim ERTC retroactively. Based on applicable law, IRS guidance provides that an employer must reduce its income tax deduction for the ERTC qualified wages by the amount of the ERTC for the tax year in which such wages were paid or incurred. Taxpayers that claimed the ERTC retroactively and filed an amended income tax return reducing their deduction for the ERTC qualified wages paid or incurred in the tax year for which the ERTC is retroactively claimed have an increased income tax liability, but may not yet have received their ERTC refund.

This release reminds taxpayers that, consistent with the relief from penalties for failure to timely pay noted in Notice 2021-49, they may be eligible for relief from penalties for failing to pay their taxes if they can show reasonable cause and not willful neglect for the failure to pay. In general, taxpayers may also qualify for administrative relief from penalties for failing to pay on time under the IRS’s First Time Penalty Abatement program if the taxpayer:

  1. Did not previously have to file a return or had no penalties for the three prior tax years,
  2. Filed all currently required returns or filed an extension of time to file and
  3. Paid, or arranged to pay, any tax due.

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