Apparently, the Bank and Vreba reached an interim agreement, whereby the Vreba companies put up additional security to continue the loans as before. Meanwhile the IRS was examining the Vreba companies' returns, and came to the conclusion that ten of the Vreba companies had failed to remit employment taxes to the tune of $1.6 million. At about the same time, the IRS determined that the $2.71 million received from the Orleton Farms auction was an overpayment. Vreba's financial distress continue through 2010, when the Bank finally obtained a judgment against Bakel, individual, Vreba and the Vreba companies. Thus, the IRS sought to offset the Vreba companies' unpaid employment tax obligations (which had since grown to $1.82 million) against the $2.71 million Orleton Farms refund.

Source: Forbes March 26, 2018 05:03 UTC