McHenry County Taxpayers Left Holding the Family Services $1.4 Million Dollar Loan?

mc-mental-healthDocuments uncovered in the Family Services bankruptcy reveal that the McHenry County Taxpayer could be left holding the $1.4 million dollar bag.  Development Specialists, Inc. is the company that is handling the Assignments for the Benefit of Creditors (ABC) for the now defunct Family Services.

If you click on the professionals tab at the top of the page and then select John C. Wheeler you will see that he has been labeled the assignee for Family Service and Community Mental Health Center of McHenry County.

John C. Wheeler

Click the picture to be directed to the DSI website.

The documents pertaining to Family Service and the bankruptcy agreement are not located on the same website.  To obtain these documents click on DSI Companion Websites tab and then DSI Assignments for the Benefit of the Creditors link.  On the left hand side click the Family Service link.

Family Service ABC

Click on the picture to be directed to the DSI ABC website.

If I have done my job I will have successfully navigated you to the Family Service ABC page.  It looks like the following (minus the red arrows).

Family Service ABC Home Page

Click on the picture to be directed to the Family Service ABC homepage.

There are three items you can download.  I have personally downloaded all three documents and have hosted them on my website as well for preserving the historical record.  These documents are:

The Affidavit of Claim

The Affidavit of Claim is just a statement that tells the court how much is owed to the person making the claim.  It is not a complicated or difficult form to fill out.

The Notice of Assignment

This document requires more scrutiny and analysis.  There is a lot here in the BACKGROUND portion.  What we know from this portion of the document is that:

In 2009 Family Services had operating revenues of $7.601 million.
In 2010 Family Services had operating revenues of $7.033 million.
In 2011 Family Services had operating revenues of $6.588 million.

There is a clear downward trend of the operating revenues at Family Services.

BACKGROUND

Also attached to the affidavit was a “Schedule of Assets & Liabilities” which is provided below:

Schedule of Assets and Liabilities

None of the numbers above have been audited.  None.

Questions

Did the Family Services executive director inform the Mental Health Board and its staff of the serious nature of its financial difficulties?

When did Family Services notify the Mental Health Board and its staff of the request by for an additional pay down of its liabilities?

In 2011, what were the nature of the “problems with payments and continued funding from the state of Illinois”?  

What were Family Services’ “best efforts” to reduce its expenses while providing services?

Was the Mental Health Board aware of the financial distress of Family Services when the vote was taken to provide a taxpayer loan?

What terms and conditions were established by the Mental Health Board attorney prior to board approval of a $1.4 million dollar loan (in two payments of roughly $700,000) to Family Services?

  • 4Truth

    Hard to believe the Mental Health Board has 1.4 million in cash just lying around that it gave to Family Services with no critical examination of its finances. Oh that’s right, the MHB has no accurate accounting of its own finances and lacks competence therefore to evaluate anyone else’s financial position. What was “overstated” by Family Services? 1.4 million. What was given by the MHB? 1.4 million. Isn’t that convenient. Why was this agency given such access to this type of money over and above the millions it got in funding from the MHB? Your questions are all valid Andrew but those in the know have all “flown the coop” and those left are those without the competence to answer. There is way more behind this piece of information.

  • Mary Margaret Maule

    They didn’t flee- they were elected to the County Board- Yep- that is right. District Four, Robert Martens was the executive officer of Family Services when they built that monstrosity on Rt. 31. when they still had an outstanding note on the property on Elm. and my guess is that they had not paid down the principle at all if they still had a $600K obligation on that property.