A northeast Iowa man has pleaded guilty in federal court to two fraudulent schemes.
Prosecutors say 47-year-old Michael Recker admitted in federal court in Cedar Rapids last week to conspiring to fabricate grain elevator scale tickets, one count of bankruptcy fraud and one count of interfering with Internal Revenue laws.
Prosecutors say Recker admitted that in 2008 and 2009 he bribed an elevator worker to create the false tickets. The elevator paid Recker more than $20,000 based on the false tickets.
Recker also admitted selling a combine at auction for about $50,000 before filing for bankruptcy. He admitted that he didn't disclose to the bankruptcy court that money was still owed him by the auction company. Recker also admitted trying to conceal taxable income.
A pharmacy connected to a deadly nationwide meningitis outbreak filed for bankruptcy protection on Friday and said it was seeking to set up a fund to pay victims.
Contaminated steroid injections from the New England Compounding Center have been blamed for 39 deaths and 620 illnesses since the outbreak began over the summer. The Chapter 11 filing in U.S. Bankruptcy Court shields the company from the threat of creditor lawsuits while it establishes the fund.
The company said in its filing that 130 lawsuits have been filed against it and 270 other people have claimed injury from the tainted drugs.
"The number or lawsuits and demands is rising on a daily basis," the filing read. "The sheer volume and wide geographic distribution of cases -- bringing the prospect of chaotic, conflicting and value-destroying pretrial orders and remedies -- has necessitated commencing this case at this time."
NECC, based in Framingham, just west of Boston, said it has hired accountant Keith D. Lowey to lead the effort to set up the compensation fund.
A bankruptcy court has approved a joint $3 billion buyout bid from Ocwen Loan Servicing and Walter Investment Management for Residential Capital. The court also approved the sale of ResCap's portfolio of about 50,000 loans to Berkshire Hathaway Inc. for $1.5 billion.
Residential Capital, also known as ResCap, is a subsidiary of Ally Financial, the former auto lending arm of General Motors. ResCap filed for bankruptcy protection in May after being hobbled by payments on debt taken out to finance soured home mortgages.
The sale is expected to close in the first quarter of 2013.
Ally now operates mainly as an automotive lender and bank. It's trying to sell off non-core and overseas assets in an effort to generate cash to pay back its government loans and reshape its operations.
A court ruling in Georgia could force those foreclosing on homes to disclose who actually owns the loan.
The Atlanta Journal-Constitution reports that the July 12 ruling by the Georgia Court of Appeals applies mostly to foreclosures that happened from 2008 to 2011. It could leave banks vulnerable to lawsuits filed by those who lost their homes. It could also have consequences for ongoing foreclosures.
The ruling last month said that the name of the owner of a mortgage must appear in foreclosure filings and notices sent to delinquent borrowers. The notice must also reflect whether it was sent by the secured creditor or someone acting on the creditor's behalf.
Many lenders sell their loans to mortgage services that handle paperwork but don't own the loans.
A federal bankruptcy judge on Tuesday allowed Hawker Beechcraft to begin exclusive negotiations with a Chinese company interested in buying the Kansas plane maker, despite a union's claims such a sale would jeopardize national security.
The decision by the U.S. Bankruptcy Court for the Southern District of New York allows Hawker Beechcraft to enter into talks for the next 45 days with Superior Aviation Beijing Co. Ltd. As part of the exclusivity deal, Superior must make a $25 million payment before the end of the week and a second $25 million deposit within 30 days.
Hawker Beechcraft chief executive Robert Miller said in a statement that the agreement provides money to preserve jobs while the company simultaneously negotiates a potential sale to Superior and prepares to emerge from bankruptcy proceedings as a standalone entity if those talks fail.
Former Red Sox pitcher Curt Schilling’s failed video game company heads to a federal bankruptcy court in Delaware, as work begins to sort out what can be salvaged from a company that says it owes more than $270 million.
The hearing for 38 Studios is scheduled for 2 p.m. Tuesday. The company was lured to Rhode Island from Massachusetts in 2010 after the state gave it a $75 million loan guarantee. It and its Maryland-based affiliate, 38 Studios Baltimore, closed their doors last month and filed for Chapter 7 bankruptcy protection.
Schilling has said the collapse of the company has probably cost him his entire baseball fortune. It is unclear whether he'll attend the hearing.
A judge threw out "Octomom" Nadya Suleman's bankruptcy claim Tuesday after she failed to file the proper paperwork to show she can't pay as much as $1 million in debt.
That means creditors can move to collect what they say they're owed, and a pending foreclosure can go ahead against the La Habra, Calif., house Suleman lives in with her 14 children, according to The Orange County Register.
Suleman's case was thrown out because she didn't file a dozen financial documents and statements required to prove bankruptcy. In her initial filing April 30, Suleman estimated that she owed as much as $1 million that she is unable to repay.
Suleman had sought protection from her debts under Chapter 7 bankruptcy, which means a court-appointed trustee would have liquidated her assets to pay off creditors before she is discharged from most of her debts. According to the filing, she owed money to more than 20 parties, including utility companies, her father and a Christian school.