Wade Cook Financial Corp. was ordered liquidated by U.S. Bankruptcy Judge Thomas Glover on Friday after the money-losing stock market seminar company's chief executive failed to provide testimony requested by creditors.
The creditors of Seattle-based Wade Cook Financial asked the court Dec. 19 to force the company and its subsidiary, Stock Market Institute of Learning Inc., into bankruptcy, alleging that employees hadn't been paid back wages and that their health insurance was canceled after the company collected and pocketed premiums.
In Chapter 7, the bankrupt company is liquidated by a trustee.
Founder Wade Cook said he will ask the judge to convert the case to a Chapter 11 reorganization in which the company can continue to operate.
In October 2000, the company, which charges $6,295 for its 16-hour Wall Street Workshop, settled Federal Trade Commission charges that it misrepresented its stock trading success to attract customers.