Sale of former Bussard Center building approved [The Frederick News-Post, Md.]

Nov. 06--A judge approved the sale of the former Jeanne Bussard Center building Tuesday, paving the way for renewed services for the disabled and generating money that could be used to pay some of the millions of dollars in claims filed against the defunct nonprofit.

The Arc of Frederick County bought the building and began serving many of the center's former clients after its abrupt closure in July 2012.

"The Arc of Frederick will continue the good work the Jeanne Bussard Center was set up to perform, and that's important," Raymond J. Peroutka said.

Peroutka is CEO of the Baltimore accounting and regulatory consulting firm Invotex, which was assigned by a judge to take over the center's finances and assets in August 2012 after the state considered it abandoned.

"Seeing this building go to them so they can continue this work is the right thing to do," he said.

Peroutka said the Arc put in the "highest and best offer" for the building at 555 S. Market St. in September at a proposed sale price of $2,425,000.

The Bussard Center, which for 47 years provided jobs and training for Frederick-area residents with developmental disabilities, closed July 5, 2012.

"We're very excited about the sale," said Joanna Pierson, executive director of the Arc. "It's a chance to move forward from what was obviously a very sad chapter in the lives of people with disabilities in Frederick."

The new building will allow the Arc to continue to expand, something it has done for the last couple of years, she said.

The building will get a face-lift and a bit of remodeling before it is reopened.

"We want to do exciting things in the new building," Pierson said. "We want to bring the community into the building, so that people with disabilities aren't isolated."

Holding leaders accountable

The sale of the building provides a portion of the money needed to pay back creditors, but a lawsuit against former directors -- which could also help pay claims -- is ongoing.

Claims worth more than $2.6 million have been filed by creditors including former clients, the federal government, businesses and the city of Frederick.

The aim of the lawsuit is to recover money from an insurance policy, Peroutka said. The suit alleges that the former members of the center's board of directors failed to properly supervise former executive director Jeanne Dalaba and failed to notify the center when they left their positions.

The suit was filed in Frederick County Circuit Court in August and seeks payment from the insurance company for at least $75,000. It was filed by attorney David D. Gilliss on behalf of Invotex.

Invotex will not pursue funds from the former board members beyond what is covered by the insurance policy, Peroutka said.

Gilliss said a lawsuit against Dalaba, who was jailed for six months for contempt after failing to help in the investigation of the closure and deliberately misleading Invotex, is planned but has not yet been filed.

A $69,163.50 judgment was entered against Dalaba for payments she made to herself as the center was closing and for costs incurred by investigators while chasing down false leads she provided.

Lt. Clark Pennington, spokesman for the Frederick Police Department, said an investigation into any possible criminal activity by Dalaba is ongoing.

Follow Danielle E. Gaines on Twitter: @danielleegaines.

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