א ארטיקל אין רעקארד
דער מעיאר ווידער איז אנגעקלאגט געווארן פאר עטליכע יאר צוריק, ווייל ער האט אנגעזעצט א הלוואה פון דריי און א האלב מיליאן דאלאר און ער האט געטוישט קאמפאני נאמען
די ארבעט איז געטון געווארן מיט די הילף פון שלום ווייס
Wieder case goes to district court
KIRYAS JOEL: A case against an Orange County mayor accused of defaulting on a $3.6 million loan goes to U.S. District Court today.
By Kirstan Conley
The Times Herald-Record
kconley@th-record.comKiryas Joel Mayor Abraham Wieder may have to go to court to answer charges that he failed to pay back millions of dollars he borrowed from the National Heritage Life Insurance Co.
A judge in U.S. District Court in White Plains will hear arguments today over whether Wieder's case should proceed.
Representatives for National Heritage claim Wieder directed his company in a fraudulent scheme to avoid paying off a $3.6 million mortgage on his cable company property.
The cable manufacturing company, which employs about 125 people, is located in the Town of Wallkill.
The civil lawsuit claims Wieder obtained the mortgage eight years ago and later transferred his assets on paper to avoid paying off the debt. He is accused of selling the property to a friend's corporation before the county could foreclose on it for non-payment of taxes.
He is also accused of transferring assets from Monroe Wire & Cable Corp. to a new business, Monroe Cable Corp.
Wieder remained head of the company and kept his old suppliers and customers, the suit claims. His sons became the major shareholders. National Heritage claims he didn't notify them of the changes, as the mortgage agreement required.
The cable company's written response to the suit claims that there was no attempt to "hinder, delay or defraud creditors," and that National Heritage doesn't have a lien on the property.
National Heritage is asking the court to liquidate Wieder's business in order to collect up to $3.6 million plus interest.
Weider did not return several calls for comment. He is not scheduled to testify today.