Group Alleges Fraud in Home Valu Bankruptcy Case

Minneapolis, MN, March 5, 2010--A group of area flooring and kitchen-counter subcontractors have accused former U.S. Sen. Rudy Boschwitz, four sons, a business consultant and a bank of conspiracy, theft, fraud and misrepresentation in connection with the involuntary bankruptcy of Home Valu Inc, according to a story in the StarTribune.

The subcontractors filed suit last month in Dakota County seeking just over $504,000 in unpaid compensation.

Three suppliers, including Herregan Distributors Inc., one of the country's largest flooring distributors ultimately forced the home remodeling chain into an involuntary Chapter 7 bankruptcy with a petition filed Jan. 29.

Herregan said Home Valu owes it $254,357. Florstar Sales Inc. of Romeoville, Ill., claims it's owed $196,227, and Hank's Specialties Inc. of New Brighton lists unpaid bills of $33,092.

The subcontractors who filed suit in are MN Carpet Crew of Plymouth, with claims of $99,679; Naturally Wood Installations of Rosemount, $14,668; M&M Flooring of Excelsior, $54,101; Richard D. Olson of Brooklyn Park, $14,637; Select Surfaces of Roseville, $295,885; Straight Edge Flooring of Buffalo, $15,800; and T. Meixell Floor Covering of St. Paul, $9.750.