Yorkway Developer Files for Chapter 7 Liquidation
Bankruptcy trustee accuses John Vontran of ‘gross mismanagement’ and providing ‘inaccurate and incomplete information.’ Effect on ambitious Dundalk development project remains uncertain, though work continues, a published report says.
John Vontran, who bought the onetime site of the troubled Yorkway apartment complex in Dundalk promising to build 66 upscale homes, has consented to Chapter 7 liquidation of assets, a Baltimore newspaper has reported.
Baltimore's City Paper reported Wednesday the consent to liquidate came Oct. 25 after a U.S. bankruptcy trustee accused Vontran and his wife, Kelly, of "gross mismanagement" and providing "inaccurate and incomplete information" to creditors about Yorkway LLC, the project's developer, and a related company.
The City Paper also reported John Vontran's former video-poker machine company, Amusement Vending Inc., had forfeited more than $50,000 in illegal gambling proceeds to the federal government earlier this year.
What effect the liquidation could have on the Yorkway project remained unclear, though work has continued on the site, for-sale signs are up, a sales center is open and nine houses have been completed.
Vontran, a Perry Hall resident, and his wife had filed for Chapter 11 bankruptcy last December, but county officials said at the time they expected it to have no effect on the project.
Vontran's company, Yorkway LLC, had bought the site of the former apartment complex from Baltimore County for $1.64 million in 2008, two years after the county had paid $21 million for it.
On the charter document for Yorkway LLC, Vontran is listed as the general manager but no other principals are listed, the Dundalk Eagle has reported.
Vontran, according to bankruptcy documents, at first refused to disclose the identities of the owners of Yorkway Properties LLC, but later acknowledged they are his brother, his mother and his brother-in-law, the City Paper said.
Numerous lawmakers, including former County Executive Jim Smith, had heralded the Yorkway project. "This is what renaissance is all about," Smith said at a groundbreaking last fall.
Read more in the City Paper.