The collapse nearly four years ago of the Toledo area's Cavista Corp. real estate empire continues to reverberate.
David A. Boston, a former Toledo city manager, former member of the Toledo-Lucas County Port Authority board, and former president of now-defunct Cavista, has filed for Chapter 7 bankruptcy, stemming mainly from loans associated with the real estate firm.
In his filing, Mr. Boston, who is now vice president of Westchester Mortgage Services Inc., cited assets of $516,833 and liabilities of $1,071,355.
Secured claims included a $299,313 loan made in 2000, an unsecured loan of $313,397 made to Cavista, another loan of $79,000, and a fourth loan of $186,000.
Co-debtors included Mr. Boston's wife, Kay, and the late Ed Bergsmark, who died in May. In 2003, Bergsmark was found guilty of writing bogus checks to agents of the former Cavalear Realty Co., which was a real estate arm of Cavista, and one count of forgery for drawing up a dummy lease for a Toledo city housing commissioner.
Mr. Boston, whose 2004 gross income was listed at $52,056, told The Blade yesterday he had been contemplating filing bankruptcy for almost a year and especially after Bergsmark's death. He filed last week in U.S. Bankruptcy Court in Toledo, just days before a new federal law made it more complex to seek to have debts erased.
"It was the loan guarantees," he said. "A number of the guarantees were jointly signed. The reality is that left me in a difficult position. It left me on the hook."
Mr. Boston was president and chief executive officer of Cavista from March, 1999, until December, 27, 2001, when the real estate and development firm collapsed.
He was paid $225,000 annually to oversee the day-to-day operations of Cavista subsidiaries, including the real estate operations, which was the largest in northwest Ohio.
He served on the Toledo port board for 10 1/2 years, resigning about a year ago.
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