RIZED NEW BANKRUPTCY OPINION: SOLIS V. KORESKO – DIST. COURT, ED PENNSYLVANIA, 2013 SEPTEMBER 9, 2013 CHAPTER11CASES LEAVE A COMMENT
HILDA SOLIS, SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR,
v.
JOHN J. KORESKO, V, et al.
Civil Action No. 09-988.
United States District Court, E.D. Pennsylvania.
August 28, 2013.
MEMORANDUM
MARY A. McLAUGHLIN, District Judge.
This action by the Secretary of Labor arises out of alleged violations of fiduciary duties under the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., in connection with a multiple-employer employee death benefit arrangement run by attorney John Koresko through a number of entities controlled by him. [1] That same death benefit arrangement is at issue in nine other cases pending before this Court. [2]
On July 23, 2013, six of the Koresko entities filed for bankruptcy pursuant to Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. [3] Individual defendants John J. Koresko, V and Jeanne Bonney have not filed for bankruptcy. The Koresko Parties then filed a suggestion of bankruptcy on July 25, 2013 with regard to four cases before this Court. The Department of Labor (“DOL”) stated its position that the case should proceed because the DOL’s action is exempt from the automatic stay that resulted from the bankruptcy proceedings. The Court agreed, stating in a July 29, 2013 Order that the above-captioned case could proceed under the governmental regulation exception to the automatic stay, under 11 U.S.C. § 362(b)(4). The other three actions in which the suggestion of bankruptcy was filed were placed in civil suspense in response to the automatic stay.
On July 30, 2013, the Koresko Parties filed a motion for reconsideration of the Court’s July 29, 2013 Order. Although the Koresko Parties’ motion is styled as a motion for reconsidera
RIZED
ReplyDeleteNEW BANKRUPTCY OPINION: SOLIS V. KORESKO – DIST. COURT, ED PENNSYLVANIA, 2013
SEPTEMBER 9, 2013 CHAPTER11CASES LEAVE A COMMENT
HILDA SOLIS, SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR,
v.
JOHN J. KORESKO, V, et al.
Civil Action No. 09-988.
United States District Court, E.D. Pennsylvania.
August 28, 2013.
MEMORANDUM
MARY A. McLAUGHLIN, District Judge.
This action by the Secretary of Labor arises out of alleged violations of fiduciary duties under the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq., in connection with a multiple-employer employee death benefit arrangement run by attorney John Koresko through a number of entities controlled by him. [1] That same death benefit arrangement is at issue in nine other cases pending before this Court. [2]
On July 23, 2013, six of the Koresko entities filed for bankruptcy pursuant to Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. [3] Individual defendants John J. Koresko, V and Jeanne Bonney have not filed for bankruptcy. The Koresko Parties then filed a suggestion of bankruptcy on July 25, 2013 with regard to four cases before this Court. The Department of Labor (“DOL”) stated its position that the case should proceed because the DOL’s action is exempt from the automatic stay that resulted from the bankruptcy proceedings. The Court agreed, stating in a July 29, 2013 Order that the above-captioned case could proceed under the governmental regulation exception to the automatic stay, under 11 U.S.C. § 362(b)(4). The other three actions in which the suggestion of bankruptcy was filed were placed in civil suspense in response to the automatic stay.
On July 30, 2013, the Koresko Parties filed a motion for reconsideration of the Court’s July 29, 2013 Order. Although the Koresko Parties’ motion is styled as a motion for reconsidera