The U.S. Department of Labor will file a motion tomorrow in the bankruptcy case of a Streamwood plastic factory, charging that owners pocketed deductions for health insurance, the Chicago Workers Collaborative reports.
Labor department attorneys will move that the funds be considered an administrative cost – giving former employees of Duraco Products priority over other unsecured creditors in case money is recovered from company owners Michael and Kevin Lynch, said Leone Jose Bicchieri of CWC.
Following the hearing tomorrow morning, former Duraco workers and their attorneys will discuss the situation at the Federal Building, 219 S. Dearborn (Wednesday, August 11, 10:30 a.m.)
In February Newstips reported that Bankruptcy Court Judge Eugene R. Wedoff ordered Duraco into Chapter 7 bankruptcy, shutting down the lawn furniture manufacturer, when he learned the company had shown him false payroll reports in order to cover up wage theft.
In March former employees filed a class action lawsuit suit…
http://communitymediaworkshop.org/newstips/?p=2150
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