By Chris Kelly, Staff Writer
After years, the city took legal action against a Scranton landlord who has racked up tens of thousands of dollars in delinquent garbage fees.
City attorneys filed a lawsuit against Ken Bond and his real estate company, PSN Realty, seeking more than $66,000 in delinquent garbage fees, plus penalties, court costs and interest.
The suit lists 19 PSN properties with multiyear garbage fee delinquencies, some of which are occupied by rent-paying tenants. None of Bond’s rental properties are registered with the city, as required by law.
The suit names Bond as the sole shareholder of PSN Realty and the lone beneficiary of the company’s income. As such, he is responsible for all fees and penalties the company owes, the city argues.
“Bond has used PSN to avoid paying refuse fees, among other financial obligations, due and owing to the city, while personally profiting from the collection of rent at the delinquent properties,” the suit alleges.
The city also moved to preempt any attempt Bond might make to hide behind the corporate veil of PSN Realty. The suit says Bond and PSN are one and the same.
“PSN has disregarded the corporate form, including under-capitalizing, failing to adhere to corporate formalities, substantially intermingling corporate and personal affairs and using the corporate form to avoid paying debts…,” the lawsuit reads. “Bond is not entitled to the protection of the corporate form and Bond, the sole shareholder and perpetuator of PSN’s scheme, is responsible for the refuse fees on the delinquent properties.”
Reached late Monday, Bond said he had not seen the suit and declined comment until speaking with his attorney. Told the suit seeks payment of his delinquent garbage fees, Bond said, “I don’t dispute that I owe it. It’s never been about that. It’s about getting the money to pay it.”
The newspaper reported in March 2019 that the city failed to collect $16.8 million in garbage fees. PSN Realty topped the list of offenders, with $125,375.99 in delinquent fees and penalties.
Last month, the newspaper reported that PSN owed $150,830, an increase of more than $25,000. Bond also owed $62,660.59 in unpaid city, school district and county taxes, adding up to nearly $214,000.
The city suit seeks $66,000 in garbage fees and $7,992 in statutory penalties, court costs and interest, for a total of $74,592.
Contact the writer: kellysworld@timesshamrock.com, @cjkink on Twitter. Read his award-winning blog at times-tribuneblogs.com/kelly.