Elderly parents swindled when closing restaurant

[Dahabas]

What is the name of your state (only U.S. law)? Illinois

My parents closed their restaurant a year ago after 23 years of operation. They sold the equipment, much of which was new or like new, to an organization from chicago called Pierce Food Service Equipment. They signed a sale contract, Pierce picked up the equipment, and that's the last they heard from them. They eventually hired a lawyer and sued, easily winning the case. In the meantime Pierce recieved numerous 1 star Yelp reviews for breach of contract. After my parents won their lawsuit, Pierce filed Chapter 11. So, it's doubtful they're going to get much out of the equipment in the end.

What's strange is the company claims decades of family ownership and operation, but from my limited searches it appears they've been in and out of Chapter 11 regularly. It seems like this might be their schtick: open under a new business license, sign contracts with no intention of paying, sell the equipment for 100% profit, keep it up until the courts catch up, then file for bankruptcy. I've found a few patterns like this online prior to the current iteration, so I believe there's plenty of evidence to be found.

So, I don't know what to do here. The $20K for the equipment was a major part of my parents' retirement savings. They can't keep paying for lawyers, but I don't want those SOBs to get away with this again. Any suggestions on how to proceed?

Thanks,
Dahabas

 

[OHRoadwarrior]

If they listed themselves as creditors, thy can try and catch the ear of the custodian of funds and the judge to present the history.

 

[Dahabas]

I'd really like to pursue criminal action. Not sure how to do that though.

 

[LdiJ]

What is the name of your state (only U.S. law)? Illinois

My parents closed their restaurant a year ago after 23 years of operation. They sold the equipment, much of which was new or like new, to an organization from chicago called Pierce Food Service Equipment. They signed a sale contract, Pierce picked up the equipment, and that's the last they heard from them. They eventually hired a lawyer and sued, easily winning the case. In the meantime Pierce recieved numerous 1 star Yelp reviews for breach of contract. After my parents won their lawsuit, Pierce filed Chapter 11. So, it's doubtful they're going to get much out of the equipment in the end.

What's strange is the company claims decades of family ownership and operation, but from my limited searches it appears they've been in and out of Chapter 11 regularly. It seems like this might be their schtick: open under a new business license, sign contracts with no intention of paying, sell the equipment for 100% profit, keep it up until the courts catch up, then file for bankruptcy. I've found a few patterns like this online prior to the current iteration, so I believe there's plenty of evidence to be found.

So, I don't know what to do here. The $20K for the equipment was a major part of my parents' retirement savings. They can't keep paying for lawyers, but I don't want those SOBs to get away with this again. Any suggestions on how to proceed?

Thanks,
Dahabas

You could try to make a case to the police that its a criminal swindle/fraud matter rather than a civil matter. I cannot guarantee that you will get anywhere with that but it doesn't hurt to try.

 

[Dandy Don]

Do you have any information as to how they are selling the equipment or who they are selling to? Are they continuing to sell in the same city or are they also selling in other cities within the same county?

If you know the names of the owners, check county courthouse records to see if the owners have a criminal history of charges filed against themselves personally or cases against the company.

And you may want to visit the courthouse to look at the paperwork in the bankruptcy file to get some clues about how they handle their financial matters and find out who their other creditors are.

A private investigator who has knowledge about forensic accounting should be able to advise you about how to find out where these people have their bank accounts or might suggest other ways you can trace whatever assets they have, unless they are so strapped that they are doing "cash only/under the table" transactions.