Sale of Jreck Subs Challenged, Delayed

Sale of Jreck Subs Challenged, Delayed
Jreck Subs (Source: WWNY)

WATERTOWN, N.Y. (WWNY) - A federal appeals court in New York City has temporarily delayed the sale of Jreck Subs.

The government is selling the iconic north country chain of sub shops to Fresh Start Franchising, after seizing the chain from serial fraudster Christopher Swartz, who is in prison on wire fraud and tax evasion charges.

What happened?

At the end of November, Swartz’s ex-wife, Tricia Patterson Swartz, stepped in with a claim that she has a right to the chain’s assets, both because she is part of a family trust and because she was an employee of Jreck Subs who must be paid before the chain is sold.

The federal bankruptcy court judge handling the case quickly batted down the claim. Judge David Hurd wrote “A review of Ms. Swartz’s filing confirms that, at best, it is an attempt at an end-run around the earlier dismissal of the Trust’s petition and, at worst, a brazen attempt to interfere with the pending sale.”

But Judge Hurd is not the final word. A judge with the U.S. Court of Appeals for the Second Circuit issued an order Monday temporarily stopping the sale, while the court considers an appeal from the Swartz Family Trust.

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