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August 3, 2001/Av 14, 5761, Vol. 53, No.43
Benley employees air financial woes
BARRY COHEN
Editor
Former employees of a now-defunct kosher nursing home aired their grievances at a bankruptcy hearing earlier this week.
According to oral testimony and court records, tax funds deducted from employees' paychecks by Benley Manor LLC were not forwarded to appropriate government agencies.
This information came to light at a July 31 creditors' hearing for Benley Manor, which filed for Chapter 11 bankruptcy July 10.
Facilitating the meeting, at which approximately 70 people were present, was Chris Pattock of the U.S. Trustees Office.
A failure to list most of the former employees as creditors and whether the nursing home consistently had maintained workmen's compensation insurance were also at issue.
Representing Benley Manor LLC at the hearing were attorney Dennis Wortman and Alan Bright, managing member of Benley Manor and rabbi/cantor of Beth Emeth Congregation of the Northwest Valley, Sun City West.
Marc Shipkin, former Benley Manor kosher supervisor, stated for the record that the unsecured priority claims of the bankruptcy documents included no evidence that wages withheld were forwarded to "the appropriate government agency."
"Can the assumption be made then, from this listing, that employees had taxes deducted and these monies were not forwarded?" he asked.
"That's probably a fair assumption," Wortman replied.
"Will these monies ever be forwarded?" Shipkin asked. "Because these were monies that the employees worked for, were deducted from our pay, and not sent in."
Bright said the money would be submitted.
Shipkin asked why no other employees were listed as creditors other than Elizabeth Bright, Alan Bright's wife.
"We are filing an appropriate amendment to the schedule. ... It was an oversight initially. Information was not immediately available," said Wortman.
Another former employee, Ynalda Wahl, inquired at the hearing about payment of employees' back salaries.
Dr. Mark Magier, former Benley Manor executive director and assisted living facility manager, said the last time employees received paychecks was June 3. The facility closed July 4.
Wahl referred to a meeting in early July when, she said, Bright assured the staff that despite financial difficulties, salaries would be paid.
"We believed you. ... You said it was no bankruptcy. It was just a reorganization," Wahl said. "We trusted you at your word. ... No one has received compensation. ... Are we going to get paid?"
Bright said he made the commitment to pay the staff because the senior partner in Benley Manor LLC, Seva Selvaratnam, promised that money would be available.
"It was on that basis and that basis only I agreed to allow things to continue. ... As of this date, that (money) has not been forthcoming, and until that day, there is no other way of compensating people," said Bright.
In its bankruptcy documents, Benley Manor lists $20,827 in assets and liabilities of $1,518,043.
Also at the hearing, Shipkin inquired about the existence of insurance to protect employees.
"Was there ever from January (onward), workers' compensation paid or any other type of insurance to cover the workers?"
Bright said, "I'm not aware. I'd have to check in on that. I don't recall on that."
The hearing also revealed that Benley Manor LLC had agreed to turn over the property at 5330 W. Union Hills Drive, Glendale, to its lessor, the Hepting Family Trust.
Jeff McKee, an attorney with Davis, McKee & Forshey, P.C., and representative for the trust, said the transfer would take place Aug. 1.
"It is not our (the Hepting Family Trust) goal to deprive you of your property or to stop you from getting paid," McKee told the creditors present. But we are going to keep the status quo until we have an opportunity to walk through with Mr. Bright and Mr. Wortman next week to evaluate the property."
In a related matter, Chevra Enterprises, Inc. - a food services consultant - and Scot and Jolinda Berman, have filed suit in the Superior Court of the State of Arizona against Alan and Elizabeth Bright, Benley Manor LLC, and Benley Investments LLC. According to court documents, the plaintiffs allege a breach of contract concerning outstanding wages and payment for services and equipment.
"(The case) won't be able to be dismissed by the bankruptcy (court) because we are holding (the Brights and Selvaratnam) accountable, personally," said Berman.
Selvaratnam could not be reached for comment.
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