Ruling paves way for foreclosure of SIST-owned gas stations

Shawano Leader, Wisconsin/December 23, 2008

A summary judgment was issued last week granting the foreclosure of three gas station properties owned by a subsidiary of the Samanta Roy Institute of Science and Technology.

Meanwhile, another civil suit filed this month is requesting a receiver be appointed to another property owned by a SIST subsidiary, the USA International Raceway, over a defaulted $2.2 million mortgage.

The judgment issued in the gas stations matter last week is only the first step in a legal process that still gives Midwest Oil of Wisconsin a period of time to retain their properties, according to the Shawano County Clerk of Courts office.

According to a civil suit filed by Integrity First Bank, of Wausau, SIST subsidiary Midwest Oil secured a total of $1.3 million in financing from the bank in August and September 2006 by mortgaging three properties in the city of Shawano.

The suit lists the properties at 1206 E. Green Bay St., 1381 E. Green Bay St., and 716 S. Main St. where Midwest’s People’s Express gas stations are located.

According to the suit, $1.2 million is remaining on the debt, but a response to the suit filed on behalf of the defendants by attorney Rebekah Nett disputes the claim that Midwest is in default. She states in her response that a $68,000 payment was made subsequent to the suit being filed in September.

The suit names Midwest Oil and SIST as defendants, as well as Naomi Isaacson, Thelma J. Brown and Michal Y. Goldstein, whom the suit claims secured the bank notes on Midwest’s behalf.

The summary judgment was issued last Wednesday by Judge Thomas Grover, but held until Friday at the request of the plaintiff who told the court a payment on the debt may be pending.

No payment was received by the end of the day Friday and the judgment was signed. However, the clerk of courts office said it had not yet been filed as of Monday afternoon.

Once it is filed, a three-month redemption period begins before another order would be issued for a sheriff’s sale of the properties.

In the other civil suit, filed on Dec. 8, Southwest Guaranty, Ltd., of Houston, is asking the court to appoint a receiver to take possession of the USA International Raceway.

Isaacson, Brown and Goldstein are also named as defendants in that suit, along with SIST and U.S. Acquisitions and Oil, Inc.

Isaacson is listed as the registered agent for U.S. Acquisitions and Oil, a Delaware corporation, according to the court document. The corporation’s principal address is listed as 1206 E. Green Bay St., which is also the address of one of Midwest Oil’s three Shawano gas stations.

The civil complaint maintains U.S. Acquisitions and Oil executed a mortgage on the amusement park and racetrack property at W5901 County Road BE in May of 2006. According to the complaint, there has been no payment received since Oct. 17.

SIST had not yet filed a response to the complaint as of Monday.

Alan Eisenberg, an attorney representing SIST on several other legal matters, said he is not the attorney of record, but his office is currently working on both of these cases.

He said he has not yet seen the briefs, however, and couldn’t comment further.

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