Dogged by Legal Troubles Since 2012, John Vratsinas Files for Bankruptcy

Embattled West Des Moines businessman John Vratsinas has filed bankruptcy, a legal maneuver that would temporarily halt to foreclosure efforts on two properties by an Iowa bank.

The Des Moines Business Record reported that Vratsinas, who ran into trouble with the Internal Revenue Service after his payroll and staffing agencies failed to make quarterly tax payments on behalf of its client businesses, filed to liquidate his assets under federal bankruptcy laws on Friday.

Vratsinas, whose West Des Moines mansion has been on the market since his legal troubles began last fall, is living in Clear Lake, where his home is under foreclosure proceedings. A commercial property in Norwalk is also under foreclosure.

In the filing in U.S. Bankruptcy Court for the Northern District of Iowa in Mason City, Vratsians listed assets and liabilities of between $1 million and $10 million.

Vratsinas previously sought bankruptcy protection to reorganize John Vratsinas Commercial Construction Co. of West Des Moines, but the case was dismissed after a Polk County judge ordered the company be liquidated to satisfy part of a $1.5 million lawsuit filed by shareholders in the company, the Business Record said.

Vratsinas has satisfied more than $6 million in IRS liens filed in connection with his payroll and staffing companies, InFocus Partners, ICL Staffing LLC and its parent company, Iowa Construction Logistics LLC.

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