Old Country Buffet’s Bankrupt Parent Is Up for Sale Again

Posted on October 3, 2021 by Camron Hoorfar

The on-again, off-again sale of the former Buffets Inc. empire is on again: Fresh Acquisitions, the owner of Old Country Buffet, HomeTown Buffet, Tahoe Joe’s and other concepts, has another buyer, restaurantbusinessonline.com reported. This time it’s Serene Investment Management, an investment firm that had previously bought up the debt to FoodFirst Global Restaurants before its bankruptcy filing.

Serene has made a stalking-horse bid of $4.2 million to buy Fresh Acquisitions out of bankruptcy, including $3.2 million, plus another $1 million in lease costs, according to court documents. The deal also includes warrants that could make the sale price more valuable, depending on the company reaching certain milestones. The auction is set to be held within two weeks, according to court documents. This is the second time that the buffet company has had a stalking-horse bidder and a scheduled auction since its April bankruptcy filing. Fresh Acquisitions declared bankruptcy with just six Tahoe Joe’s restaurants open — or less than one-one hundredth of the 650 locations it had at its peak in 2006, when it was known as Buffets Inc.

Thinking about filing bankruptcy? Contact our office at (816) 524-4949 or visit our website at hoorfarlaw.com and make an appointment to discuss if that is your best option.

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SEC Gives Whistle-Blower $110 Million in Second-Biggest Payout

Posted on October 2, 2021 by Camron Hoorfar

The U.S. Securities and Exchange Commission awarded $110 million to a tipster whose information resulted in enforcement actions, bringing total payments under the agency’s whistle-blower program to more than $1 billion, Bloomberg News reported. The tipster’s award, the second-largest ever, includes $40 million from the SEC and $70 million from a related action brought by another agency.

Under the SEC’s whistle-blower program, tipsters can be paid for information that prompts sanctions by another agency. “Today’s announcement underscores the important role that whistle-blowers play in helping the SEC detect, investigate and prosecute potential violations of the securities laws,” SEC Chair Gary Gensler said in the statement. “The assistance that whistle-blowers provide is crucial to the SEC’s ability to enforce the rules of the road for our capital markets.” The SEC has made disbursements to 207 tipsters since issuing its first award in 2012. Individuals are eligible for payments ranging from 10% to 30% of the fines collected in enforcement cases where penalties exceed $1 million. Funds used to pay tipsters don’t come out of disgorgement, the portion of a sanction that’s supposed to be returned to harmed investors.

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Massachusetts Reaches $27 Million Settlement with Auto Lender

Posted on October 1, 2021 by Camron Hoorfar

A national subprime auto lender has agreed to pay more than $27 million to settle allegations that it took advantage of thousands of Massachusetts borrowers, according to the state attorney general’s office. The settlement with Credit Acceptance Corp. in Suffolk Superior Court will provide debt relief and credit repair to consumers, according to a statement from Attorney General Maura Healey. “Thousands of Massachusetts consumers, many of them first-time car buyers, put their faith in CAC to help them with an auto loan, but were instead lured into high-cost loans, fell deeper in debt, and even lost their vehicles,” she said. “With this significant $27 million settlement, eligible Massachusetts drivers who have been suffering under the weight of a crushing car loan due to CAC’s deceptive practices will be able to receive relief and avoid new defaults.” The settlement also requires the company to make changes to its loan handling practices.

If you have debt and would like to seek help, contact us at 816-524-4949 or visit our website.

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Former NFL Players Plead Guilty to Healthcare Fraud

Posted on September 30, 2021 by Camron Hoorfar

Clinton Portis was among three former National Football League players who have pleaded guilty for their roles in a nationwide scheme to defraud a healthcare program for retired NFL players, according to the U.S. Justice Department. Portis, a former running back who was drafted by Denver in 2002 and spent the bulk of his career with Washington, D.C., faces a maximum penalty of 10 years in prison. He is scheduled to be sentenced on Jan. 6. The alleged scheme targeted the Gene Upshaw NFL Player Health Reimbursement Account Plan, which was set up in 2006 to help retired players cover medical expenses.

According to court documents, Portis caused the submission of false and fraudulent claims to the plan on his behalf over a two-month period, obtaining $99,264 in benefits for medical equipment that was not actually provided. Portis, who earned two Pro Bowl selections during an NFL career that spanned 2002-2010, and former wide receiver Tamarick Vanover pleaded guilty, two days after their trial resulted in a hung jury. Former NFL linebacker Robert McCune, the third defendant in that trial, pleaded guilty on the second day of the trial. Portis was one of 10 former NFL players charged in December 2019 with allegedly defrauding the healthcare program of more than $3.4 million by filing false claims for hyperbaric oxygen chambers and other expensive medical equipment.

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VW Reaches $42 Million Settlement with U.S. Owners over Takata Air Bags

Posted on September 29, 2021 by Camron Hoorfar

Volkswagen’s U.S. unit has agreed to a $42 million settlement covering 1.35 million vehicles that were equipped with potentially dangerous Takata air bag inflators, according to documents filed in U.S. District Court in Miami. The settlement is the latest by major automakers and much of the funding goes to boosting recall completion rates. To date, seven other major automakers have agreed to settlements worth about $1.5 billion covering tens of millions of vehicles. The defect, which leads in rare instances to air bag inflators rupturing and sending dangerous metal fragments flying, prompted the largest automotive recall in history. To date, at least 19 U.S. deaths have been attributed to faulty Takata air bag inflators. Honda Motor Co reached an earlier $605 million civil settlement with owners similar to the Volkswagen settlement. More than 400 injuries are also tied to faulty Takata inflators and at least 28 deaths worldwide. There have been two U.S. Takata deaths in Ford Motor Co vehicles and one in a BMW.

If you or a loved one has been hurt in an accident call our office at 816-524-4949 or visit our website.

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Commercial Chapter 11 Filings Decrease 50 Percent in August from Last Year, Total Filings Down 18 Percent

Posted on September 28, 2021 by Camron Hoorfar

Commercial chapter 11 filings decreased 50 percent in August 2021 from last year, according to data provided by Epiq Systems, Inc. The 264 commercial chapter 11 filings in August 2021 fell by exactly half from the 528 filings registered in August 2020. The 32,257 total U.S. bankruptcy filings for August 2021 represented an 18 percent decrease from the August 2020 total of 39,361 filings. Likewise, the 30,533 consumer filings in August 2021 decreased 17 percent from last year’s consumer total of 36,873. Overall commercial filings in August 2021 totaled 1,724, down 31 percent from the 2,488 filings in August 2020.

“Struggling families and businesses are seeing government stabilization programs expire, lender forbearance programs recede, and challenges to the supply chain wrought by the pandemic resurface,” said ABI Executive Director Amy Quackenboss. “Amid uncertain economic times, bankruptcy remains a dependable shield to help keep companies and consumers from being financially overwhelmed.”

The 264 commercial chapter 11 filings recorded in August 2021 represented an 8 percent increase from the 245 commercial chapter 11 filings in July. August 2021 business filings increased 1 percent to 1,724 from July’s business total of 1,709. Total bankruptcy filings in August 2021 registered only a slight decrease (0.41%) from the 32,391 total filings in July. The 30,533 consumer filings in August also represented a slight decrease (0.49%) from July’s consumer total of 30,682.

Considering bankruptcy? Contact our office at 816-524-4949 or visit our website to discuss if this is the best option for you.

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Kansas Has the Third-Highest Amount of Farm Bankruptcies in the U.S.

Posted on September 27, 2021 by Camron Hoorfar

Although farm insolvencies have declined nationally, Kansas is third highest in the nation for these bankruptcies. Beginning from June 2020 through June 2021, Kansas chapter 12 farm bankruptcies trailed only Wisconsin and Minnesota. According to the American Farm Bureau Federation, Wisconsin had 48 farms file chapter 12 bankruptcy, with Minnesota and Kansas falling behind the Badger State with 31 and 30 filings, respectively. Iowa and Nebraska had more than 20 filings, with all the other states in the teens or below. Although chapter 12 bankruptcies have fallen nationwide since 2012, when there were 582 filings, farmers continue to ride a tightrope. As of 2021, the number of bankruptcies is 438 nationwide. Kansas had two less filings than last year. According to the acting chief economist for the American Farm Bureau Federation, Veronica Nigh, the dairy sector was particularly hard hit over the last several years. But, she said, all portions of agriculture have seen chapter 12 filings.

Have questions about bankruptcy? Contact our office at (816) 524-4949 or visit our website to make an appointment to discuss if that is your best option.

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Report: 44 Percent of U.S. Small Businesses Have Less than 3 Months’ Worth of Cash

Posted on September 26, 2021 by Camron Hoorfar

More than 18 months into the pandemic, bakery owner Letha Pugh is so low on cash that she’s afraid to spend it on anything other than paying her employees. She’s hardly alone: 44% of U.S. small businesses have less than three months of cash reserves, leaving them vulnerable to another shutdown due to COVID-19 or other financial emergencies, according to a Goldman Sachs survey of more than 1,100 small businesses. An even greater share — 51% — of Black-owned small businesses have less than three months’ cash on hand, according to the same survey. While federal loan programs were crucial in keeping many small businesses afloat until COVID-19 restrictions were eased, some owners are concerned by the level of debt they’ve taken on. According to Goldman, 41% of small business owners and 55% of Black-owned businesses say the new debt could undermine their financial stability. Only 31% of small businesses say they could access funding if they needed additional capital. Even fewer Black-owned businesses — just 20% — report confidence in their ability to raise money.

If you are in debt and would like to speak to an attorney, call our law office at 816-524-4949 or visit our website.

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Small business owners should see if they qualify for the home office deduction

Posted on September 25, 2021 by Camron Hoorfar

Many Americans have been working from home due to the pandemic, and certain people will qualify to claim the home office deduction.

Here are some things to help taxpayers understand the home office deduction and whether they can claim it:

  • Employees are not eligible to claim the home office deduction. 
  • The home office deduction, reported on Form 8829, is available to both homeowners and renters.  
  • There are certain expenses taxpayers can deduct. They include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.  
  • Taxpayers must meet specific requirements to claim home expenses as a deduction. Even then, the deductible amount of these types of expenses may be limited.  

The term “home” for purposes of this deduction:  

  • Includes a house, apartment, condominium, mobile home, boat or similar property which provide basic living accommodations.
  • A separate structure on the property such as an unattached garage, studio, barn or greenhouse.
  • Any portion of a home used exclusively as a hotel, motel, inn or similar establishment does NOT qualify as a “home” and, therefore, does not qualify for a home office deduction.  

Generally, there are two basic requirements for the taxpayer’s home to qualify as a deduction:

  • There must be exclusive use of a portion of the home for conducting business on a regular basis. For example, a taxpayer who uses an extra room to run their business can take a home office deduction only for that extra room so long as it is used both regularly and exclusively in the business.
  • The home must be the taxpayer’s principal place of business. A taxpayer can also meet this requirement if administrative or management activities are conducted at the home and there is no other location to perform these duties. Therefore, someone who conducts business outside of their home but also uses their home to conduct business may still qualify for a home office deduction.
    • A portion of a home that is used exclusively for conducting business on a regular basis but not used as the principal place of business, will qualify for a home office deduction if either patients, clients or customers are met in the home or there is a separate structure that is used exclusively for conducting business on a regular basis.  

Taxpayers who qualify may choose one of two methods to calculate their home office expense deduction:  

  • Using the simplified method consisting of a rate of $5 per square foot for business use of the home which is limited to a maximum size of 300 square feet and a maximum deduction $1,500.
  • Using the regular method whereby deductions for a home office are based on the percentage of the home devoted to business use. Any use a whole room or part of a room for conducting their business will involve figuring out the percentage of the home used for business activities to deduct indirect expenses. Direct expenses are deducted in full.

Courtesy of the IRS

If you need help with taxes, please reach out to our office by phone at (816) 524-4949 or our website at Hoorfarlaw.com.

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Most Expensive Home in America Defaults on $165 Million in Debt, Heads for Sale

Posted on September 24, 2021 by Camron Hoorfar

 A Los Angeles megamansion once expected to list for $500 million has gone into receivership after the owner defaulted on more than $165 million in loans and debt, according to court filings. The 105,000-square foot Bel Air estate, known as “The One,” was placed into receivership and is expected to be relisted at a lower price in the coming months, according to people familiar with the property. The receivership marks a stunning reversal for “The One” and its flashy developer, Nile Niami, who often touted the property as his “life mission” and “the biggest, most expensive home in the urban world.”

Expected to hit the market in 2017 with a price tag of $500 million, “The One” has been dogged by repeated delays, funding problems and changing strategies. The home stretches like an ultra-modern palace over eight acres on a hilltop overlooking LA. It has nine bedrooms, multiple kitchens, a nightclub, four-lane bowling alley, salon, gym, 50-seat theater, a running track and an underground garage for 50 cars, with two auto turntables. Its seven water features include multiple pools, a jacuzzi and a moat that surrounds the house. The master bedroom suite is 4,000 square feet. Every door in the house is electric, along with all the toilets. Niami had planned a “jellyfish room” and ice bar but both proved too costly.

Got debt? We can help! Give us a call at (816) 524-4949 or visit our website to set up a consultation.

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