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CSMC ex-CEOs CU Fleet files bankruptcy
MILWAUKEE, Wis. (4/13/09)--CU Fleet, a Wisconsin auto dealership partly owned by the former CEO of Central States Mortgage Co., filed for a Chapter 11 bankruptcy last week, allegedly owing three Wisconsin credit unions at least $2.8 million. The West Allis, Wis.-based dealership was purchased last summer by Richard Jungen, Central States' founder and former CEO, and Thomas Burns. CU Fleet's major secured creditors listed in court filings are Guardian CU, based in West Allis; Prime Financial CU, Cudahy; and Landmark CU, New Berlin. Prime and Guardian are owed at least $800,000, and Landmark is owed at least $2 million, according to court records (Milwaukee Journal Sentinel April 9). The creditors are questioning transactions involving CU Fleet and another dealership, Donald Driver Motors in Campbellsport. Jungen and Green Bay Packers receiver Donald Driver are co-owners of the Driver dealership. Burns is general manager of the Driver dealership, said the Journal Sentinel. CU Fleet's bankruptcy filing is the latest court saga involving Jungen and Central States Mortgage Co., a mortgage company that was 70% owned by credit unions. Last week Central States went into receivership and attorney Michael Polsky was appointed receiver to oversee the mortgage company's liquidation (News Now April 10). Also last week, Central States' parent company, CSMC, dropped a $15 million lawsuit against Jungen and several former CSMC executives over losses the company said it experienced while Jungen was CEO. The suit was dropped "without prejudice," which means it can be brought up again. Last week Bankruptcy Court Judge Pamela Pepper ordered CU Fleet to provide detailed records about its inventory and its more than $200,000 in cash and receivables, said the Journal Sentinel.


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