Excel's Coffee Shop

[excel]

To think the Judge didn't make sure the customers BEFORE the creditors in this case was paid off is beyond HEARTLESS!

Yes, I know the rules.
But this was FRAUD. STEALING!!!
Are they in jail? No.

Take the money out of the CEO and the rest of them to pay off their clients.

Way beyond HEARTLESS!





Former Pettit Oil customers have new reason for hope
By Jeff Burnside
Published: Nov 23, 2015 at 4:28 PM PST


BREMERTON, Wash. -- There is new hope for thousands of home heating oil customers who were convinced by Pettit Oil to pre-pay at the very time the company was entering bankruptcy.

A KOMO Investigation last year found that as Pettit Oil was going out of business, much of the pre-paid oil was never delivered, and customers were never notified about how to get their money back.

But the U.S. Bankruptcy Trustee has reversed course and is seeking $20 million to be returned by large creditors awarded assets from Pettit Oil in court. If the trustee is successful, some of that money could go toward home heating oil customers who were left out in the cold with an unpaid credit. An earlier attempt to get $2.1 million returned from corporate creditors was rejected by the court.

"I was just devastated," said feisty 95-year-old Vera Conley when KOMO News interviewed her last year after she lost more than $2,800 despite being on a fixed income. She remembers getting an aggressive phone call from a Pettit Oil salesperson seeking additional pre-payments.

"And I said 'well, I got a credit of $2,000. Why would I have to?' She says 'well, you have to pay it!' "

Vera found out her oil had never been delivered only after her furnace shut off mid-winter.

Pettit Oil cashed Vera's final pre-payment check four days after they were out of business.

Vera was among thousands of home heating oil customers in Pierce and Kitsap Counties who were convinced by Pettit Oil to pay in advance, just as it was going out of business, according to court records.

Pettit Oil would not talk last year. Workers in one Pettit office near Bremerton covered windows instead and called police on a KOMO camera crew outside.

But just after the KOMO Investigation aired in January, Federal Bankruptcy Judge Paul B. Snyder issued a scathing ruling, chopping $80,000 in compensation sought by Pettit Oil's lawyer, Brian Budsberg, in part, for some of the very issues raised in the KOMO Investigation.

"Home heating oil customers were being charged even if they had a credit on their account," wrote the judge. "Numerous creditors were not listed such as those that [sic] gave deposits for home heating oil…"

So "the lack of notice (and thus due process) to all potential creditors has been a continuing problem in this case."

Inquiries to Budsberg were not immediately returned. He has previously declined KOMO News requests to discuss the case.

After we spoke with U.S. Bankruptcy Trustee Kathryn Ellis last year, home heating oil customers like Vera were included in the list of creditors.

More than a year later, Vera is pleased that there's a chance she might finally see some of her money.

"Great. Great, because I'm on a fixed income," she said. "Don't have a lot of money. It'd be a blessing."

Vera showed KOMO News all the notices she's been getting now that she and other homeowners have been added to the list of creditors.

And, since our story aired, Vera's even been going to some of the court hearings, writing letters, and raising a stink to get her money back.

"Oh yes!" she laughed.

Vera knows it's a long shot, that the big creditors have armies of lawyers, and that the complex rules of bankruptcy are stacked against her.

She and other homeowners vow not to let it drop.

If you're owed money:

If you believe you are owed money from Pettit Oil, you can print out the "Proof of Claim" form. The "Name of Debtor" is Pettit Oil. The case number is 13-47285.

Fill it out as best as you can and mail it to:

Clerk of Court
U.S. Bankruptcy Court
1717 Pacific Avenue, Suite 2100
Tacoma, WA 98402-3233

The general phone number for the U.S. Bankruptcy Court in Tacoma is [phone]. U.S. Bankruptcy Trustee Kathryn Ellis can be reached at [phone]. Email: [e-mail]. Fax [phone]. Ellis' attorney is Deborah Crabbe: [e-mail]

While not universally advised, you can also write a letter to Senior Judge Honorable Paul B. Snyder who is overseeing the Pettit case. It will become part of the public record.