Cladek company will be reorganized

Historic City News has received word that a U.S. District Court judge in Jacksonville has ruled today that Lydia Cladek, Inc. will be reorganized and operated by a new, professional management company.

Attorneys who argued for the reorganization say this ruling means that Lydia Cladek, Inc. investors have the possibility of a greater return — over time.

The court-appointed bankruptcy trustee argued, unsuccessfully, to shut the company down and distribute the remaining cash to shareholders.

Cladek is in federal custody; charged with running an illegal ponzi scheme that defrauded shareholders out of millions of dollars.