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Brooke Corp. lays off 52 more

Thu. October 23, 2008; Posted: 05:23 PM
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PHILLIPSBURG, Oct 23, 2008 (The Hays Daily News - McClatchy-Tribune Information Services via COMTEX) -- BXXX | Quote | Chart | News | PowerRating -- Already scheduled to be in Phillipsburg today to help laid-off Brooke Corp. workers, employment officials were greeted with news that additional layoffs had taken place Tuesday.

That's when another 52 employees were laid off at the Phillipsburg office of the financially beleaguered Brooke Corp.

Brooke Corp. officials didn't return calls Wednesday, but special master Albert Reiderer told the Kansas City Star of the layoffs. Reiderer was not in the office today.

With the layoffs that had taken place Oct. 14, that would leave about 72 Brooke employees on the job in Phillipsburg. All of the employees at the advertising center now have been moved over to the processing center about a block away, a move that leaves a relatively new building sitting empty a block from Phillipsburg's downtown.

Workforce One regional director Deb Scheibler said crews already were scheduled to be in Phillipsburg today to help with employees already laid off.

"I haven't heard anything specific," she said this morning of the most recent action. "I know there was another round of layoffs."

The workforce employees will be helping people laid off with job searches and preparing resumes.

"I don't know the exact number," Scheibler said of the latest round of layoffs.

The layoffs were just one in a series of adverse actions being taken against the insurance franchising company.

One of those changes involve the appointment of a new chief operating officer, who also will serve as president and secretary of the company, in addition to his existing role of chief counsel.

Carl Baranowski's appointment came late last week after the appointment of a single person to the board of the Brooke Corp. That person is David D. Zeglis, manager of Trim Creek LLC, which acquired about 44 percent of the company's stock, all that was owned by Rob and Leland Orr, former majority owners and founders and executives of the company.

Reiderer, a former Jackson County, Mo., prosecutor, told the Star that Baranowski's appointment would not affect his role as special master, a position assigned to him by a federal judge presiding over a series of lawsuits over millions of dollars a number of banks say they are owed by Brooke.

The Star also reported other problems are popping up, including notice from the Stockton National Bank that it was accelerating the $4.5 million loan it extended to Brooke in August 2007.

Late last week, the Kansas Insurance Department offered assurances to purchasers of insurance from Brooke agents.

Those policies, the department said, are in full force.

The department, however, also announced the FBI is investigating Brooke's rapid fall, including its inability to account for all of the premiums it had been paid.

To see more of The Hays Daily News or to subscribe to the newspaper, go to http://www.hdnews.net. Copyright (c) 2008, The Hays Daily News, Kan. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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