In recent months, Penbrook Borough (Dauphin County) has demanded that real estate investors submit copies of their federal tax returns to the Borough. Those that have refused to comply have been charged criminally with filing false tax returns - even those who have failed to file any returns at all.
This summer, the Borough dropped charges against one investor that has been so charged (for fear of a civil rights lawsuit).
Penbrook has also charged investors as individuals (related to registration requirements) even though they own real estate in the name of an LLC, thus disregarding the corporate entity.
Additional lawsuits and enforcement actions remain pending against other investors (and homeowners) over minor matters.
Penbrook's employees have begun to embroil the Borough in an ever widening controversy, the outcome of which depends only on the willingness of investors and residents to appeal to the Court of Common Pleas or otherwise challenge the Borough in Court.
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