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HomeNewsArchivesBankruptcy Trustee: Prosser Never Filed 2006 Tax Return

Bankruptcy Trustee: Prosser Never Filed 2006 Tax Return

Jan. 8, 2008 — Jeffrey Prosser, former owner of Innovative Telephone, has not filed his 2006 income-tax return, court documents charge.
This allegation showed up in a court filing by James P. Carroll, the Chapter 7 trustee appointed by the court to handle Prosser's personal finances.
Carroll raised the point in a motion to the judge that would allow Carroll more time to object to financial filings by Prosser. The trustee said he needs more time to object because the filings are not yet complete.
The allegations go beyond Prosser failing to submit his 2006 income tax — and thus not sharing that information with the trustee. Prosser has also failed to provide Carroll with the 2007 bank statements for Prosser's Bank of America account, the trustee says. During the period of interest, February 2007 to Nov. 17, 2007, this Prosser bank account shrank from $63,083 to approximately $25,000, according to the trustee.
Similar complaints have been made to the court by the other two court-appointed neutrals in the case: the trustee for Prosser's former corporations and the examiner who looked at Prosser's personal finances.
Meanwhile, some of the non-Prosser forces in the bankruptcy trial have started to disagree with each other in open court.
At first the divide was between some of the creditors — notably Greenlight Companies, the representatives of one-time minority stockholders in one of Prosser's holding companies — and the court-appointed neutral officials and their lawyers and accountants.
The Greenlight position was that the case did not need as many — or as expensive — lawyers and accountants as the neutrals had hired to help them with their work. Greenlight routinely files protests about the size of the bills that these law and accounting firms regularly submit to the court. That battle is ongoing.
The newest wrinkle is a struggle between Greenlight and Banco Popular over what should be done with the money from the sale of Prosser's one-time ownership of 10,000 shares of common stock of the V.I. Community Bank (VICB). This represents the controlling interest in the bank.
Banco Popular argues that because of a loan agreement made to Prosser long ago, the stock belongs to them. Greenlight contends there is inadequate documentation for the bank's claim, and that the money from the sale of the stock should go toward meeting the general pool of debts incurred by Prosser and his companies rather than to that one bank. Greenlight filed papers to this effect Dec. 31. The court will dispose of this issue — along with many others — later.
The next hearing in the case will take place at 9 a.m Feb. 1 in the Pittsburgh courtroom of U.S. Bankruptcy Judge Judith Fitzgerald.
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