As the former Menomonee Falls company
Window Select makes its way through the bankruptcy process, the company that took it over, North Carolina-based
Cogent Analytics, has allegedly found that former CEO
Justin Kiswardy paid $4.3 million to insiders.
Kiswardy not only paid $3.8 million to himself, but $298,210 to his significant other, $118,461 to his brother, $54,785 to his mother and $59,555 to his father "for which no apparent consideration (was) received by the Debtor," according to a recently filed liquidation plan in the case.
The legal counsel guiding Window Select through the bankruptcy process sought to locate any assets that could possibly be paid to creditors and found the payments to company insiders. The plan of liquidation says the $4.3 million was paid between 2020 and 2021, the same time customer complaints of incomplete work and improper installation began streaming in. These complaints can be found on the Better Business Bureau’s
website.
That’s not the only noted discrepancy in Kiswardy’s finances. The liquidation plan also mentions Window Select’s attorneys learned of $210,000 being held in escrow from the sale of a building in Ohio.
“Justin Kiswardy had directly tried to obtain the funds by filing a suit under the name of ‘Justin Gabel’ as the plaintiff,” according to the liquidation plan. “The body of the complaint identifies Justin Gabel as ‘Justin Gabel aka Justin Kiswardy.’ Gabel is Justin Kiswardy’s mother’s family name.”
Out of the $210,000 that was held in escrow, $160,000 could be traced to transfers made from Window Select’s bank accounts, according to the plan.
Window Select also listed an Employee Retention Tax Credit, a refundable tax credit for businesses that paid qualified wages to employees within a certain period of time, allegedly worth $408,000 in its books. However, Window Select’s legal counsel has found the company is not actually eligible for this credit.
"...Employees were not retained as required to be eligible for the credit and the debtor did not timely file required tax returns related to employment taxes," according to the liquidation plan.
Window Select officially filed for Chapter 11 bankruptcy -- following months of customer complaints -- in February. The company had been a provider of window, siding and doors.
In January 2022, Window Select hired Cogent Analytics for management consulting. That September, Cogent decided bankruptcy was the only solution to Window Select’s problems. That was when Kiswardy stepped down as CEO and Cogent Analytics named
Andrew Parsons as CEO.
"Cogent Analytics is working with the authorities through the bankruptcy proceedings and is unable to comment on litigation against Window Select owner, Justin Kiswardy," said the firm in a statement
.
Durham, North Carolina-based
Phoenix Investment Group Holding then announced it would be
willing to take over Window Select’s contracts at a projected loss of $1 million. Phoenix said it would create an entirely new entity, called TruVista LLC, to do so.
The recently filed liquidation plan, which is awaiting final approvals, shows Phoenix will place $25,000 into a liquidating trust to help facilitate the process.
