Summit PUD attorneys challenge Grimm’s bankruptcy
Lawyers for the Donner Summit Public Utility District are trying to block Steven Grimm from filing Chapter 13 bankruptcy, claiming that the former utility district general manager and embezzlement suspect lied about his assets and interests in local companies.
DSPUD attorney Geoffrey Evers sent a declaration to the Sacramento division of the United States Bankruptcy Court earlier this week, asking the court to either dismiss the bankruptcy petition or change the chapter from 13 to 7.
In his deposition, Evers claims Grimm’s unsecured debt far exceeds the Chapter 13 ceiling of $290,525.
Grimm and his wife, Sandra Harmon, filed for Chapter 13 bankruptcy on Sept. 4. The petition placed an automatic stay on all civil acts, claims and proceedings against Grimm and his property. The petition was filed four days before a hearing to seek a writ of attachment on Grimm’s property.
If Grimm is forced to file in Chapter 7, the stay could be removed and Grimm may be forced to liquidate his assets.
“That would be good news for (Donner) Ski Ranch and creditors,” said Donner Ski Ranch attorney Robert Tamietti.
The ski resort is listed among the creditors on Grimm’s bankruptcy petition, in addition to DSPUD and numerous credit card companies. Grimm’s credit card claims amount to more than $160,000.
In Evers’ declaration to bankruptcy court, he faults Grimm for claiming he stopped functioning in as an officer with Donner Ski Ranch, Donner Spitz Inn and Donner Summit Tramways. According to Grimm’s bankruptcy petition, Grimm stopped acting as an officer in May.
However, as recently as this week, Grimm was still listed as an officer with all entities, according to the California Secretary of State’s corporate records.
Tamietti said the listing with the Secretary of State is “just a paperwork problem,” adding that the corporate records haven’t caught up with his client’s information.
Grimm and Harmon also claim to have ended their roles as officers with Administrative Processing Services – listed as a condo rental program on the petition – in October 2000. Grimm is still listed as agent for service of process with that corporation as well, according to the Secretary of State’s corporate records.
Grimm has been charged with embezzling approximately $500,000 from the Donner Summit Public Utility District and credit card fraud. If he is found guilty, Grimm could face up to eight years in prison.
Grimm is also the target of a lawsuit by the Donner Summit Utility District for an undisclosed amount.
Grimm’s preliminary hearing has been scheduled for Oct. 8 at 9 a.m. in the Nevada County Superior Court Truckee division.
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