New York Seeks Millions in Tax From Lehman

[Uzybone]

Source: NYTimes

Ever since Lehman Brothers filed for bankruptcy last September, creditors have been lining up to get their share, from a $233 million claim from a former employee for deferred compensation to one for $160 for a bounced check from the American Red Cross in Millburn, N.J.

Add to that list a longtime friend and defender of Richard S. Fuld Jr., the former Lehman chief executive who has been much maligned for steering the financial firm into bankruptcy: Mayor Michael R. Bloomberg.

The Bloomberg administration has accused Lehman of shortchanging the city of $627 million in corporate and other taxes, beginning in 1996. It is now trying to convince federal bankruptcy court in Manhattan that the city should jump closer to the front of Lehman’s long line of creditors.

The city’s claim is one of the largest among those who have so far sought money from the once-mighty investment house.

Read more: http://www.nytimes.com/2009/08/05/nyregion/05taxes.html?hp

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Good for NY State. Get every red cent.