The lawyers managing the Westhaven Group, the Toledo-based real estate investment company shut down for securities fraud, have submitted a $186,137 bill for their work in April and May.
Gerald Kowalski and John Czarnecki, Westhaven s court-appointed receivers, have charged $465,198 since December, according to a filing made Wednesday with Lucas County Common Pleas Court.
Westhaven holds $18 million in assets and has liabilities of almost $30 million, a $12 million loss. The same deficient assets meant to repay Westhaven investors also are covering the receivership s bills.
The receivers have cut jobs and expenses at Westhaven in order to recoup money for investors, said Mr. Czarnecki, explaining the costs associated with the receivership.
Founded by John Ulmer in 1981, Westhaven failed to properly match its investors money with houses as collateral, which caused the Ohio Department of Commerce to seize control of the business.