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Iowa: Convicted exec owes $14.1M in taxes, fines

Published on NewsOK Modified: January 4, 2013 at 5:15 pm •  Published: January 4, 2013

Randall Lending, an attorney for the receiver, said legal proceedings involving Wasendorf's assets had been suspended earlier in the case to prevent a rush to win judgments against Wasendorf that could give "one set of potential creditors preference over others." He said it's not clear how the department's tax bill would be treated compared to claims from others.

"That would have to be dealt with at a later date. There's a question even as to whether it's a valid claim. Just because they made a notice of assessment, doesn't mean it's valid," he said. "That would have to be looked into, adjudicated and determined."

Once the stay is lifted, the Wasendorfs would have 60 days to appeal the assessment. The couple was divorced in 2010, and Russ Wasendorf remarried another woman shortly before his attempted suicide.

Iowa Department of Revenue spokeswoman Victoria Daniels said Friday that the agency had no choice but to agree to the stay, which is routine in such cases.

"We wanted to assert our rights to collect any taxes that are due to the state of Iowa," she said.

Lending said the receiver has sold off Wasendorf's condominimum in Chicago and other properties, and continues efforts to locate and liquidate his other assets, including his partial ownership of Romanian development firms.