Judge orders release of financial records in Shoosmith landfill bankruptcy case

A federal bankruptcy judge has ordered companies connected to the Shoosmith landfill bankruptcy in Chesterfield County to turn over financial records. This action is part of an effort by the court-appointed trustee to trace where the landfill’s money and assets went, WTVR CBS 6 reported.

Former Shoosmith owners and related companies opposed the trustee’s attempts to obtain these records. However, U.S. Bankruptcy Judge Keith L. Phillips ruled on October 19 that these entities cannot claim Fifth Amendment protection and must comply with subpoenas, according to the station.

The financial records are expected to help determine who ultimately received money, property, and other assets involved in transactions under investigation. This issue is significant due to the large financial challenges related to closing and maintaining the landfill.

An engineering group working for the trustee estimated that closing the landfill and providing post-closure care could cost more than $172 million over 30 years, while available bond funds total just over $19 million. Virginia lawmakers have allocated $10.6 million to address environmental problems at Shoosmith, which still falls short of the estimated costs.

Local residents, including members of Chesterfield Citizens for Responsible Government, have expressed concern that citizens might bear the financial burden of the landfill’s problems. The court order notes that the trustee is tracing millions of dollars transferred from the Shoosmith companies before bankruptcy filings.