Trucking

After CoreFund Capital’s abrupt closure, receivers are working to get their truckers paid

Timothy Hassenger, the court-nominated recipient, is about three years old after a legal battle between siblings over assets in a family trust led to the abrupt closure and dismissal of all employees at Core Fund Capital in Texas. We are working to pay off the receivables of hundreds of truckers in the coming weeks. based factoring company.

Some small business truckers have been forced to shut down operations after CoreFund stopped responding to calls and emails from desperate truckers after the office went dark on July 18. You can no longer pay your driver or buy fuel.

Since District Court Judge Graham Quisenbury of Parker County, Texas last week named Hassenger as the beneficiary of the Core Fund, Hassenger and former employees have returned to the office to “rebuild operations for the Core Fund.” Is working.

Michelle Buckalew, managing director of public relations firm Sunwest Communications, said Friday that Hassenger is working with CoreFund employees to “address client needs and provide cash flow solutions and levels of care and service. Because of this, CoreFund said it was “fully functional.” they deserve.

Buckalew was hired to work with the CoreFund’s communications team and recipients to address career concerns.

In an email to FreightWaves, Buckalew said the CoreFund is solvent and plans to continue operating after the truckers are paid.

Hassenger hopes to find a new factoring company, but plans to release carriers, “many of whom have chosen to stay in the core fund,” she said.

Some operators fear that if they stay on CoreFund, they will find themselves in the same situation in a month or two if the feud between Meir “Shim” Sacks and brother Yaakov “Jacob” Sacks is not resolved. expressed concern. .

“The brothers cannot disrupt the company while the company is in receivership,” Buckalew said.

Read more here: Carriers unable to pay drivers, buy fuel after CoreFund Capital shuts down

what’s the feud?

Shim Sacks founded CoreFund Capital in 2014, according to court documents. CoreFund is a wholly owned subsidiary of GMA Fund LLC, the holding company of his Shim Sacks Family Legacy Trust founded by him in October 2014.

As part of the original trust, Sim Sachs gave Jacob Sachs special powers of appointment.

According to court filings, Jacob Sachs “exercised this special appointment right he holds” under the original trust and in July transferred the trust’s assets, including the holding company that owns the core fund, to his transferred to the Sachs family grandchildren’s trust, a new trust created by 12.

A review of court records in Pennsylvania, where the brothers live, shows that in February 2010, Jacob Sachs and his company, Sachs Medical Corporation, pleaded guilty to money laundering and federal drug law violations in federal court. became clear.

Warren Fonville, the Fort Worth, Texas, law firm representing the young Sachs, did not respond to Freightwaves’ request for comment.

Shim Sacks did not respond to FreightWaves’ request for comment.

In the old trust, only Sim Sachs’ children were named as beneficiaries, but in the new trust, both brothers’ children are listed as beneficiaries. It also names CoreFund’s longtime president, Bonnie Castillo, as the sole manager of her CoreFund.

It is unclear why Jacob Sachs created the new trust.

what happened?

The CoreFund ceased trading in mid-July, and the truck driver had no one in the office to release the truck from the UCC-1 (Uniform Commercial Code) lien filed by the factoring company against the carrier’s assets. I got a double hit. They also wanted the revocation of assignment notices sent to truck driver customers directing payments to the CoreFund.

Jason Medley, a partner in the Houston office of law firm Spencer Fane, represents more than 100 shipping companies affected by the CoreFund closure.

The CoreFund situation is unusual in the factoring world, he said.

“This is certainly a moving target,” Medley said in an email to Freightwaves. “After several contacts with their team, recipient staff and CoreFund staff (many of whom are said to have returned to work under pending recipients) have gained access to computer systems. , giving us time to review the list of our carriers, which are just over 100 at the moment.”

In a videoconference hearing with factoring companies, lawyers and carriers on Wednesday, Medley said the carriers just want to get back to work, even if it means leaving the core fund and moving to another factoring company. said only.

“We just want the people behind the wheel freed up to carry their stuff and get paid,” Medley told FreightWaves. “The world has enough supply chain problems as it is. And there are many great factoring companies that are ready and willing to pick up parts. There is only

He warned factoring companies to be cautious if they decided to fund truckers for UCC lien and notice of quotas still in force on the CoreFund.

Buckcarew agreed.

CoreFund plans to release carriers looking for new factoring companies, but it could be risky for companies already factoring CoreFund’s truckers’ receivables, she said.

“The CoreFund’s UCC statement is still in effect and all the factoring companies that make the loans are in second lien status,” she told FreightWaves.

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https://www.freightwaves.com/news/receiver-works-to-get-truckers-paid-after-corefund-capitals-abrupt-closure After CoreFund Capital’s abrupt closure, receivers are working to get their truckers paid

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