My construction company in MN fell behind (later to find due to an employee writing fraudulent checks) and was convicted of two counts of felony theft by swindle and one count of nonpayment to subcontractors. Prior to these convictions I filed bankruptcy and included both home owners and trades/subcontractors. Now I am facing over $700k in restitution (appeal late September) and half of the amount includes debt covered in my bankruptcy. I have asked my BK attorney if this is possible since the federal court found nothing wrong with my accounting, and he doesn't know. I cannot afford to go after the employee who wrote bad checks (unfortunately my attorney didn't focus enough on this in my trial) as I am now facing this restitution.
Please let me know if it is legal for the state of MN to ask for restitution for these trades if I had already included them in bankruptcy in 2015. I would imagine the companies have already claimed these losses on their tax returns.
No. You still have to pay restitution if found guilty.
