Bankruptcy Filings Continue Steady Drop

Bankruptcy filings continued a steep two-year-long fall that coincided with the start of the coronavirus pandemic. Filings fell 16.5 percent for the 12-month period ending March 31, 2022. According to statistics released by the Administrative Office of the U.S. Courts, the March 2022 annual bankruptcy filings totaled 395,373, compared with 473,349 cases in the previous year.

Filings fell both for businesses and non-business bankruptcies, compared with the year ending March 2021. Non-business filings fell by a total of 15.7 percent, while business filings fell 33.9 percent.

This year’s 12-month filing total for the quarter ending March 31 is slightly more than half of the total reported in March 2020, when the pandemic began. That year’s 12-month total was 764,282.

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Google’s Russian Subsidiary to File for Bankruptcy

Google’s Russian subsidiary is planning to file for bankruptcy. The U.S. tech firm said that Russian authorities had seized the unit’s bank account. Alphabet’s Google has been under pressure in Russia for months as Moscow wanted content it viewed as illegal to be deleted. It was also criticized in the country for restricting access to some Russian media on YouTube. So far, the Kremlin has so far stopped short of blocking access to its platform. Google said that it had become impossible for its Russian office to function after its bank account was seized by authorities. It also published a notice of the unit’s intention to file for bankruptcy. Google has halted the majority of its commercial operations in Russia since February.

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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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