Court Trustee Pushes For Assemblyman Schroeder's Arrest

New Jersey Assemblyman Robert Schroeder could face his second arrest in less than a year if a federal judge makes an order proposed by a court-appointed trustee in Schroeder's bankruptcy case.

Three creditors who previously filed a petition in U.S. Bankruptcy Court to force Schroeder into bankruptcy have withdrawn their filing, according to court records, but a trustee appointed to the case is fighting to keep it going and has sought to have Schroeder arrested for alleged contempt of court.

The three creditors — Quincy Wong, 91, and Nicolas Bedural of Mahwah and Joseph Marra, 62, of Brick — wanted to withdraw the filing because they did not want to spend the time or money on the litigation, northjersey.com reported Tuesday.

Last month, court-appointed trustee Donald V. Biase, who represents everyone owed money by Schroeder, sought to have Schroeder appear in court and provide documents regarding his debt.

Schroeder's only response was, allegedly, a fax of a handwritten note stating "I Robert G. Schroeder respectfully invoke my 5th Amendment rights against self incrimination," according to court documents.

Schroeder was previously indicted on charges he allegedly wrote bad checks for loan payments worth a total of $3.4 million and stole $1.8 million from investors. He is due back in court on those criminal charges next month.

The motions to withdraw the forced bankruptcy were filed July 10, according to court records. Tuesday, Biase filed a motion to have Schroeder held in contempt of court and proposed he be arrested by U.S. Marshals and have monetary sanctions imposed against him, court records show.

Schroeder's "attempted invocations of the Fifth Amendment is misplaced," according to Biase's motion.

Biase also proposed that a $1,000 per day sanction be placed against Schroeder for every day he fails to comply with court orders.