Documents 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.
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.
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).
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:
- Affidavit of Claim – Family Services
- Notice of Assignment – Family Services
- Trust Agreement – Family Services
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.
Also attached to the affidavit was a “Schedule of Assets & Liabilities” which is provided below:
None of the numbers above have been audited. None.
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?