CHICAGO (August 4, 2017) - The Honorable Kathleen M. Pantle of the Circuit Court of Cook County today appointed Robert Handler as Receiver in the case of the City of Chicago v City of Harvey. Last week Judge Pantle found that Harvey has been in violation of an agreed Consent Decree because of its failure to make payments for water purchased from Chicago.

Mr. Handler’s mandate will be to manage the financial affairs of Harvey’s water department. Among other duties, he will work to ensure that Harvey’s Water Fund meets its obligations under the Consent Decree. As Receiver, Mr. Handler will report and answer to Judge Pantle and will regularly communicate with the City of Chicago, the City of Harvey and other municipalities that are involved in the lawsuit.

Mr. Handler will be assisted by Michael D. Pakter, a Managing Member of Gould & Pakter Associates, LLC. Mr. Pakter and his CPA firm perform forensic accounting and internal investigations, analyze financial transactions and reconstruct incomplete financial information.

Mr. Handler stated, “This is an extraordinary remedy for a court to insert any person in place of a city’s officials. This is a severe situation which we take seriously.”

Background from Judge Pantle’s order of July 17, 2017:

“Since 1917, Harvey has purchased water from Chicago and resold it to residents, businesses, and downstream municipalities. After Harvey fell behind on its water payments to Chicago in 2012, Chicago sued Harvey in the Circuit Court of Cook County, entitled City of Chicago v City of Harvey, et al., 12 CH 44855. After the court entered a Summary Judgment against Harvey, in the amount of $26,303,339.02, the parties settled the case by Consent Decree entered on January 20, 2015.

“In regards to any money generated by its waterworks system (“Water Revenue”), Harvey was required to deposit into a segregated account…”

Judge Pantle ruled that Harvey has been in violation of fulfilling the obligations of the Consent Decree. She also determined that the Consent Decree authorized the court to appoint a Receiver to take control of Harvey’s Water Fund and enforce the terms of the Consent Decree.

About Robert P. Handler

Robert Handler is the Principal and CEO of Commercial Recovery Associates, LLC. He has over 30 years of professional experience in distressed financial transactions, with most of his involvement in managing turnaround situations and other financially challenged financial matters. He has handled business reorganizations, acquisitions, mergers, court-supervised receiverships, sales and liquidations across the country and in other parts of the world, and in a wide variety of industries.

Mr. Handler also practiced law in a commercial litigation firm where he was engaged in all aspects of bankruptcy litigation on behalf of secured creditors, creditors’ committees and debtor clients. In addition, he has handled numerous foreclosures, public and private asset sales, as well as actions on guarantees, notes, and leases.

Mr. Handler was featured on “American Greed” on May 4, 2011. He was the Receiver in the case of disgraced Merrillville, Ind., physician Mark Weinberger. Dr. Weinberger left his practice in shambles, and Commercial Recovery Associates was there to pick up the pieces.

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