The sale of two large Alexandria properties could settle millions owed to the government by real estate developer and former Connection Newspapers CEO Peter Labovitz, according to a report from the Washington Business Journal.
Labovitz owes the U.S. more than $3 million in unpaid federal taxes, according to a complaint filed in federal court in January. Labovitz filed for Chapter 11 bankruptcy and told WBJ that the proceeds from the sales of his home at 510 Wolfe Street in Old Town and the Kings Row Development (1604-1610 King Street) could satisfy the U.S. Department of Justice in the Eastern District of Virginia.
DOJ contends in its filing that Labovitz has “orchestrated a series of fraudulent conveyances and nominee transactions to obstruct, hinder, and delay the collection of his tax liabilities” in an effort to prevent foreclosure on his properties…