A lawsuit by the Pennsylvania Attorney General's office against Unicredit America Inc.'s former president can continue even though he declared bankruptcy.
Michael J. Covatto filed for personal bankruptcy protection in June, and argued the bankruptcy must stay the consumer-protection suit Pennsylvania regulators filed against Unicredit a year ago in Erie County (Pa.) Court.
Chief U.S. Bankruptcy Judge Thomas P. Agresti rejected Covatto's request. The Attorney General's Office is seeking fines and costs against Covatto and Unicredit.
Covatto, 50, has declined comment on the case. He ran Erie, Pa.-based Unicredit until an Erie County judge shut it down a year ago (
According to the state, Unicredit had set up a room at their Erie office that appeared to be a courtroom, complete with a raised area where a judge would sit, attorneys tables and legal books on bookshelves. A person dressed in black would sometimes sit in the position of the judge, the state said.
