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IN RE MARKOS GURNEE PARTNERSHIP

Bankruptcy Nos. 91 B 17242, 91 B 18792 and 91 B 18793. Adv. No. 94 A 00023.

182 B.R. 211 (1995)

In re MARKOS GURNEE PARTNERSHIP, Diplomat North, Inc., and PCS Hotels, Debtors. Joel A. SCHECHTER, Plaintiff, v. STATE OF ILLINOIS, DEPARTMENT OF REVENUE, Defendant.

United States Bankruptcy Court, N.D. Illinois, Eastern Division.

April 27, 1995.

Attorney(s) appearing for the Case

Brad Berish, Adelman, Gettleman & Merens, Ltd., Chicago, IL, for Joel Schechter, plaintiff and former Chapter 11 Trustee.

Catherine Steege, Chapter 7 Trustee, Jenner & Block, Chicago, IL.

James Newbold, Asst. Atty. Gen., Litigation Div., Chicago, IL, for Dept. of Revenue.

AMENDED MEMORANDUM OF DECISION

EUGENE R. WEDOFF, Bankruptcy Judge.

This adversary proceeding arises from the failure of a Chapter 11 trustee to pay state taxes that he collected from customers of a hotel and restaurant business owned by the debtors. In a prior adversary proceeding, this court ruled that the unpaid taxes did not constitute a trust fund held for the benefit of the state. State of Illinois v. Steege (In re Markos Gurnee Partnership),

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