A federal judge on Tuesday remanded back to Shawano County Circuit Court a foreclosure case against the racetrack property owned by a subsidiary of the Samanta Roy Institute of Science and Technology.
In making his ruling, U.S. District Judge Rudolph Randa also chastised and sanctioned SIST for filing court documents containing "fantastic and delusional" allegations against judges, city officials and Shawano Mayor Lorna Marquardt.
The case involves a civil suit Southwest Guaranty, Ltd. filed in December 2008 against SIST and its subsidiary U.S. Acquisitions and Oil, Inc. (USAO). The suit alleges the USA International Raceway, which is operated by USAO, and SIST defaulted on a $2.2 million loan.
In June, a court-ordered receiver - Southwest's attorney, Steven J. Kruegar - took possession of the property at W5901 County Road BE in Wescott, but SIST subsequently petitioned to the federal court to have the case moved there.
The case was removed from Shawano County Circuit Court to the U.S. District Court for the Eastern District of Wisconsin.
But on Tuesday, Randa ruled SIST did not present proper grounds for the case to be removed from the state court system.
"There is no basis for removal simply because the defendants are dissatisfied with the nature of proceedings in state court," Randa wrote.
Randa also took issue with "a number of detailed, serious, and bizarre allegations" filed by SIST, including the claim that, "Shawano is a Neo-Nazi territory where it is believed people of other races and religions have no right to life."
The court filings, similar to affidavits previously submitted in federal court by SIST CEO Naomi Isaacson, accuse Shawano Mayor Lorna Marquardt of heading a vast racial conspiracy. SIST has repeatedly claimed bias on the part of government officials and the media against the organization because its founder, Avraham Cohen - formerly R.C. Samanta Roy - is a native of India.
"The hate crimes being committed by Shawano Mayor Lorna Marquardt and her cronies are unfathomable," stated one of the court filings cited by Randa.
The filings allege Marquardt's "tentacles" control local and state judges and even Randa's colleague in Green Bay, U.S. District Judge William Griesbach.
"Defendant's experience of ‘justice' in Shawano is comparable to the ‘justice' Jews experienced under Hitler's regime," the SIST filing states and goes on to question whether any court in Wisconsin can be impartial toward SIST.
"Many of SIST's subsequent pleadings and motion papers are infected with similar allegations," Randa wrote.
SIST's allegations also implicate Southwest Guaranty and their counsel, claiming they "are members of Lorna Marquardt's secretive, racist group" and regularly attend the meetings she orchestrates.
"The objectionable allegations are so fantastic and delusional that no reasonable attorney would certify that they have evidentiary support," Randa wrote.
Randa added a sanction against SIST, saying he hoped it would deter SIST from making similar allegations in future court filings.
He ordered SIST to pay the court costs and attorneys' fees incurred by Southwest Guaranty as a result of SIST's "wrongful removal" of the case from circuit court.
