Quoted from DanQverymuch:you don't think they will come after you for it?
No
Quoted from stangbat:Keith stated this:
In response to this:
Can someone comment on this? Is this stay a normal thing when something like a bankruptcy discharge happens? Why was there a stay that prevents collection of the debt in civil court? It seems like the expectation is that it will be lifted and then his assets will be pursued in civil court. Or am I not understanding this correctly?
This is a legal topic that Wikipedia actually summarizes pretty accurately...
Quoted from robertmee:Hmm....no offense, but didn't everyone get their panties in a wad when one party went after their funds first without notifying the second party? Seems a bit of Deja Vu. Granted, there is no love lost for the IRS, and I agree with you Hilton...no need to involve them at this juncture. But if people are going to take the high ground, need to apply the rules consistently.
Besides, Misprision of a felony is a felony in itself. A Bally executive was convicted of this awhile back. It took a Presidential Pardon to get it wiped off of his record so he could practice Law again.
I'm not a lawyer, but if Kevin defrauded the money from other people and is ordered to repay the stolen money, then how would that be noted as income for the IRS to seize? If Kevin didn't commit fraud and kept the cash then it would become income from a failed business and taxed.
The court hasn't decided if this money is theft or income yet. But we know that a bankruptcy won't make it go away.
Quoted from Pinballs:Once the painful process of extracting information from Kevin, as if from an itinerant but hopelessly naughty child, ends, the tax implications of all this will be fascinating.
Sadly for creditors, the IRS will presumably have first dibs on Kevin's assets, such as they are.
The priority for customer deposit claims [Priority 7] is actually senior to tax claims [Priority 8].
Section 507(a)(7) of the Bankruptcy Code gives a 7th priority to "allowed unsecured claims of individuals, to the extent of $̶1̶,̶8̶0̶0̶ $2,775* for each such individual, arising from the deposit, before the commencement of the case, of money in connection with the purchase, lease, or rental of property, or the purchase of services, for the personal, family, or household use of such individuals, that were not delivered or provided." [11 U.S.C. §507(a)(7)]
http://www.gpo.gov/fdsys/pkg/USCODE-2011-title11/html/USCODE-2011-title11-chap5-subchapI-sec507.htm
*The initial $1,800 dollar amount in the original Bankruptcy Code has been increased numerous times over the years to compensate for inflation, and it was subsequently increased to $2,775 in 2013.
Quoted from Razorbak86:The priority for customer deposit claims [Priority 7] is actually senior to tax claims [Priority 8].
Section 507(a)(7) of the Bankruptcy Code gives a 7th priority to "allowed unsecured claims of individuals, to the extent of $̶1̶,̶8̶0̶0̶ $2,775* for each such individual, arising from the deposit, before the commencement of the case, of money in connection with the purchase, lease, or rental of property, or the purchase of services, for the personal, family, or household use of such individuals, that were not delivered or provided." [11 U.S.C. §507(a)(7)]
http://www.gpo.gov/fdsys/pkg/USCODE-2011-title11/html/USCODE-2011-title11-chap5-subchapI-sec507.htm
*The initial $1,800 dollar amount in the original Bankruptcy Code has been increased numerous times over the years to compensate for inflation, and it was subsequently increased to $2,775 in 2013.
https://www.federalregister.gov/documents/2013/02/21/2013-03998/revision-of-certain-dollar-amounts-in-the-bankruptcy-code-prescribed-under-section-104a-of-the-code
Pre-order customers who paid deposits would likely have their claims "bifurcated" (divided in two) into: (1) a priority unsecured claim of up to $2,775, and (2) a residual claim for the remainder, which would likely be classified as general unsecured. So the priority unsecured claim would likely be paid after all secured claims and some higher priority unsecured claims like administrative claims of lawyers/professionals in the case (Priority 2), and some wage & benefits claims of employees (Priorities 4 & 5), but before lower priority unsecured claims like taxes owed to governing bodies (Priority 8), and before general unsecured claims (e.g., trade vendors).
Razor.. your post here made me think.. so the judge has now denied Kevin's requests for discharge. But since he voluntarily entered Chapter 7.. does that mean he is still going to be liquidated to attempt to pay off any creditors? And does that mean.. the trustee will still continue to dig for assets to liquidate?
I'm double backing now thinking.. the discharge denial isn't the end.. but just another decision point? When I first read that offer between the US Trustee and Kevin.. it seemed like a settlement to 'go away' and close it up. But is it?
Quoted from Bryan_Kelly:does anyone else love the judge as much as me?
Bryan . . Mike, here . . . the guy who bought your Dracula pin.
Yes, I like the judge, but I've got to tell ya, court systems must vary widely in the USA. If this same case had come up here in my city, Kevin would have already been shaken down, lost everything, and be in prison. I had years of being in the courthouse when I was doing TV news reporting and then later on as a court administrator. We have 5 judges with a population of about 150,000. While we think this is big here, I'm sure it is tiny compared to the court system where Kevin is being tried.
I can give you the outcome in a nutshell had Kevin appeared here in one of our courts. Anyone with half a brain can see Kevin is intentionally skirting ALL the issues. Our judges are curt and to the point. One in particular would have told him right up front that he feels he is perjuring himself and he was going to put a halt to it RIGHT NOW! He would get VERY stern and tell him eye to eye he can see through all the BS. And I can actually see him saying this: "OK. Mr. Kuleck, get on the phone and call your wife in here. Tell her to bring every scrap of records you have. You've had ample time to produce bank records. I'm going to put you in jail if she doesn't bring anything, and you can get out when she does. Court will be in recess for 30 minutes. When we get back, I'm going to get _____ bank on the phone and get some answers because it is evident you aren't going to!" And said bank(s) are just down the street from our Justice Center. He will know whoever answers the phone probably by first name. They will certainly know him.
Kevin's current court is probably being very cautious so as not to get reversed later on if there are any appeals. Here . . . they wouldn't care. If they can see through the smoke screens, they know most everyone in the community would back their decisions. I'm telling you, 6 months wouldn't have gone by here without a conclusion. After Kevin's first failure of ANY kind, our court would have brought him in for contempt and jailed him immediately. This case would have been over long ago.
Maybe the lawyers on here will jump all over me for my comments, but unless you live here and see it with your own eyes, you really don't know our local court system. And to be honest with you, just about every court in Kentucky and all over most of the South operates the same way. Everyone knows everyone, word gets around, and your ability to bullshit or lie is known even before you walk in the courthouse door. The judge would probably already be aware if you are a shady character and capable of this kind of theft. You don't answer all the requests in a timely manner, your ass is cooked. Justice is 99% correct and SWIFT!
Mike in Kentucky
Quoted from flynnibus:Razor.. your post here made me think.. so the judge has now denied Kevin's requests for discharge. But since he voluntarily entered Chapter 7.. does that mean he is still going to be liquidated to attempt to pay off any creditors? And does that mean.. the trustee will still continue to dig for assets to liquidate?
I'm double backing now thinking.. the discharge denial isn't the end.. but just another decision point? When I first read that offer between the US Trustee and Kevin.. it seemed like a settlement to 'go away' and close it up. But is it?
I'm not really sure? I typed that last paragraph assuming the assets would be liquidated and the proceeds would be distributed in bankruptcy, but now that Kevin has stipulated to a denial of discharge for his pre-repetition debts, the federal bankruptcy case may simply be dismissed with prejudice.
Quoted from Pintucky:Bryan . . Mike, here . . . the guy who bought your Dracula pin.
Yes, I like the judge, but I've got to tell ya, court systems must vary widely in the USA. If this same case had come up here in my city, Kevin would have already been shaken down, lost everything, and be in prison. I had years of being in the courthouse when I was doing TV news reporting and then later on as a court administrator. We have 5 judges with a population of about 150,000. While we think this is big here, I'm sure it is tiny compared to the court system where Kevin is being tried.
I can give you the outcome in a nutshell had Kevin appeared here in one of our courts. Anyone with half a brain can see Kevin is intentionally skirting ALL the issues. Our judges are curt and to the point. One in particular would have told him right up front that he feels he is perjuring himself and he was going to put a halt to it RIGHT NOW! He would get VERY stern and tell him eye to eye he can see through all the BS. And I can actually see him saying this: "OK. Mr. Kuleck, get on the phone and call your wife in here. Tell her to bring every scrap of records you have. You've had ample time to produce bank records. I'm going to put you in jail if she doesn't bring anything, and you can get out when she does. Court will be in recess for 30 minutes. When we get back, I'm going to get ____ bank on the phone and get some answers because it is evident you aren't going to!" And said bank(s) are just down the street from our Justice Center. He will know whoever answers the phone probably by first name. They will certainly know him.
Kevin's current court is probably being very cautious so as not to get reversed later on if there are any appeals. Here . . . they wouldn't care. If they can see through the smoke screens, they know most everyone in the community would back their decisions. I'm telling you, 6 months wouldn't have gone by here without a conclusion. After Kevin's first failure of ANY kind, our court would have brought him in for contempt and jailed him immediately. This case would have been over long ago.
Maybe the lawyers on here will jump all over me for my comments, but unless you live here and see it with your own eyes, you really don't know our local court system. And to be honest with you, just about every court in Kentucky and all over most of the South operates the same way. Everyone knows everyone, word gets around, and your ability to bullshit or lie is known even before you walk in the courthouse door. The judge would probably already be aware if you are a shady character and capable of this kind of theft. You don't answer all the requests in a timely manner, your ass is cooked. Justice is 99% correct and SWIFT!
Mike in Kentucky
In Michigan, Federal Courts follow Federal Law. Are things handled differently in Missouri Federal Courts?
Quoted from flynnibus:I'm double backing now thinking.. the discharge denial isn't the end.. but just another decision point? When I first read that offer between the US Trustee and Kevin.. it seemed like a settlement to 'go away' and close it up. But is it?
My impression was this was not over yet. The debts still have to be paid. I got the impression that the court needs to know where the money went still. I've never personally gone through bankruptcy, but based on what I've known from other people that have, once the court figures out which debts need to be paid back, they come up with a payment plan or some way for the debtor to actually pay it back.
It's then up to the debtor to make those payments, or further action is taken.
Does the US judicial system have the equivalent of an Anton Piller (warrantless search and seizure of documents from private premises) order available to attorneys?
Or on that note a Mareva injunction to freeze potential dissipation of assets including transferral to a spouse?
Quoted from Rarehero:So when's this shit going to go down with John Popadiuk?
X2 come on Zane!!
Quoted from Razorbak86:This is a legal topic that Wikipedia actually summarizes pretty accurately...
Thanks, that was informative. I understand why a stay would be granted when someone files for bankruptcy. But I don't understand why one would be granted when the bankruptcy was discharged unless this is just an automatic thing in such cases.
Quoted from DanQverymuch:If you guys get some money back, then the IRS decides that part of it should have gone to them, you don't think they will come after you for it?
Since the funds were ill gotten for a non-existent product that never should have been sold, no. The money is the property of the pre-order customers.
Quoted from chadderack:Since the funds were ill gotten for a non-existent product that never should have been sold, no. The money is the property of the pre-order customers.
You're making too much sense.
Quoted from DanQverymuch:If you guys get some money back, then the IRS decides that part of it should have gone to them, you don't think they will come after you for it?
That would be a very interesting application of the transferee liability rules. I could not imagine the Service even making an attempt that arguement...
Here is some data on the transferee liability rules (doesn't look applicable to me on my cursory glance): https://www.irs.gov/irm/part4/irm_04-011-052.html
choked a chicken, for the IRS to look into....
Haha, I don't think they look into that...maybe I'm wrong....hopefully not.
Quoted from chadderack:Since the funds were ill gotten for a non-existent product that never should have been sold, no. The money is the property of the pre-order customers.
You mean, yes they would, but since...
Kudos to the group that supports Keith and isn't giving up. Too see someone who tried to swindle our community get the screws tightned around him, is great to witness. Don't give up guys.
Quoted from stangbat:Thanks, that was informative. I understand why a stay would be granted when someone files for bankruptcy. But I don't understand why one would be granted when the bankruptcy was discharged unless this is just an automatic thing in such cases.
This is another example of where terminology in a bankruptcy case can get confusing. The "Automatic Stay" is typically in place throughout the case, unless the court grants specific relief to certain creditors. Only the debt can be "discharged". The bankruptcy case itself will eventually be either "dismissed" or "closed".
In Kevin's Chapter 7 case, at the last court hearing, Sean Cowley (Trial Attorney for the U.S. Trustee's Office) threatened to file an adversary proceeding under 11 U.S.C. §727(a) petitioning the court to DENY a discharge of Kevin's pre-petition debts.
That threatened filing motivated Kevin to sign a Stipulation after the hearing that ultimately gave Sean what he wanted...
That "Stip" will soon be followed by a permanent order denying the discharge of the pre-petition debts.
Nevertheless, the case has not yet been dismissed or closed. No party has filed a "Lift Stay" motion with the court, so the Automatic Stay is still in place. Kevin still has to produce certain documents before the next hearing, and Keith still has several adversary proceedings pending before the court for the avoidance and recovery of preferential or fraudulent transfers.
For example:
a) the real estate transfer to Amanda Kulek;
b) the 32-ft Dutchman RV transfer to Kathy Kulek;
c) the cash and CNC machine transfers to VirtuaPin;
d) the pinball machine transfers to Tim Fife; and
e) the cash transfer to David Truckel/Truckle.
https://pinside.com/pinball/forum/topic/the-official-pinside-skit-b-predator-discussion/page/251#post-3519891
https://pinside.com/pinball/forum/topic/the-official-pinside-skit-b-predator-discussion/page/252#post-3520945
https://pinside.com/pinball/forum/topic/the-official-pinside-skit-b-predator-discussion/page/252#post-3521151
https://pinside.com/pinball/forum/topic/the-official-pinside-skit-b-predator-discussion/page/252#post-3521164
---------
Several of the terms used above are clarified in the following paragraphs, along with reference sources:
1) Automatic Stay
2) Discharge
3) Dismissal and Closing
----------
1) Automatic Stay
The Automatic Stay is typically lifted when a case is dismissed or closed, but it is sometimes lifted while a case is still active, if a creditor files a "Lift Stay" motion and the court grants relief from the Automatic Stay. A Lift Stay motion might be filed when a creditor wants to proceed against real property, or a creditor wants to proceed with a state court lawsuit. The motion must demonstrate "cause" for lifting the Automatic Stay, and must be supported by admissible evidence. For example, if a creditor asserts a secured claim, the motion must contain admissible documents that assert a valid security interest, and all documents that support an assertion of lack of adequate protection or a lack of equity in the relevant property.
http://www.cacb.uscourts.gov/faq/relief-automatic-stay-how-do-creditors-file
Until the Automatic Stay is lifted, creditors do not have the right to take action against the debtor or the property of the estate.
----------
2) Discharge
A discharge is a court order that forgives a debtor of certain specific debts. The discharge order prohibits a creditor from attempting to collect from a debtor a debt that has been discharged. However, not all debts are dischargeable. Parties can file written requests (adversary complaints) to have the court determine if a debt is dischargeable.
(a) Creditor, Trustee, or U.S. Trustee Asks the Court to Determine if There is a Discharge
(i) Some unsecured debts are not dischargeable because Congress has determined they are types of debts that should not be discharged because of public policy reasons. Examples are:
-- spousal and child support obligations;
-- certain tax debts;
-- most educational loans;
-- debts related to injuries or death caused by driving while intoxicated; and
-- debts arising from fraudulent conduct.
(ii) It is also possible for a debtor to be denied a discharge of all unsecured debts if a debtor has not been honest, forthcoming, or cooperative in the bankruptcy case. These scenarios are listed in Section 727 of the Bankruptcy Code and usually involve the U.S. Trustee, a trustee, or a creditor filing a lawsuit in a chapter 7 bankruptcy case to determine that the debtor should be totally denied a discharge.
http://www.cacb.uscourts.gov/faq/discharge-does-every-debtor-get-discharged-every-debt
----------
3) Dismissal and Closing
(a) Dismissal vs. Closing of a Bankruptcy Case -- The main differences between dismissal and closing of a bankruptcy case involve discharge, ability to file another bankruptcy case, and the consequences of filing another bankruptcy case.
(i) Dismissal of a Bankruptcy Case – Dismissal ordinarily means that the court stopped all proceedings in the main bankruptcy case AND in all adversary proceedings, and a discharge order was not entered. Dismissal can occur because a debtor requested the dismissal and qualifies for voluntary dismissal. Dismissal can also occur without a debtor's consent if the court orders dismissal on its own, or a trustee or a creditor files a motion to dismiss the bankruptcy case, and the court grants the motion.
(ii) Closing of a Bankruptcy Case – Closing means that all activity in the main bankruptcy case is completed. This means that all motions have already been ruled upon, and if a trustee was appointed, the trustee has filed a statement that all trustee duties have been completed.
Closing does not mean that a discharge was entered unless all activities related to determining discharge have been completed.
Closing does not necessarily mean that all adversary proceedings are finished.
I have been having a hard time keeping up with all the posts in this thread, I'm spending most of my time defending myself against an Internet smear campaign that outrageously claims that I like playing pinball.
So does anyone think Kevin lied, told a fib or purgered himself under oath?
Does that mean anything at all anymore?
Just lock the bastard up and be done with him until it's resolved, it will make the wait for restitution and additional justice more bearable, if there is such a thing. It's ridiculous how much freedom criminals are allowed to get away with.
Quoted from Razorbak86:This is another example of where terminology in a bankruptcy case can get confusing.
Thanks. Stuff like this is why I stick to simple things like repairing pinball machines.
Quoted from CNKay:So does anyone think Kevin lied, told a fib or purgered himself under oath?
Yes to all three... especially the "purgered [bowels]" after he was sworn in and his shocked realization that the judge would keep repeating KeithinMI 's questions until he was satisfied with the answer!
Yes... I do realized it is "perjured" no more PMs necessary. I do like "purgered" more now due to the mental image of Kulek "purgering" his pants
Quoted from Concretehardt:I have been having a hard time keeping up with all the posts in this thread, I'm spending most of my time defending myself against an Internet smear campaign that outrageously claims that I like playing pinball.
I guess Keith doesn't want to give Kevin's statements any credibility... but I'd love someone to retort to him "by internet, do you mean the people you defrauded and want their money back?"
Quoted from c508:Yes... I do realized it is "perjured" no more PMs necessary. I do like "purgered" more now due to the mental image of Kulek "purgering" his pants
PM sent.
Quoted from c508:Yes to all three... especially the "purgered [bowels]" after he was sworn in and his shocked realization that the judge would keep repeating keithinmi 's questions until he was satisfied with the answer!
It will be interesting to see who else (if any) was in collusion with him and decided to purge $ out of the pinball community.
Quoted from jayhawkai:PM sent.
Aw . . . come on! I was dying to see what you wrote!
When I saw your avatar I thought I would read something brilliant from you and it would be some salve on my wounds I got from yesterday's game. I actually had dreams of our loss! It's going to take me all season to get over this!!!
Have a good week, my friend.
Mike
I believe that once the stay is lifted, those with a court ordered judgment against KK (me), and the civil suits can resume.
Quoted from Enaud:I believe that once the stay is lifted, those with a court ordered judgment against KK (me), and the civil suits can resume.
After what "you" have gone through, I hope your the first to get the FULL refund.
Will be interesting to hear what Kathy Kulek's story is related to the Dutchmen, and hopefully under oath.
So maybe Mommy will drive Kevvy to court, but will she lie for him under oath? Inquiring minds want to know.
Quoted from SirScott:Will be interesting to hear what Kathy Kulek's story is related to the Dutchmen, and hopefully under oath.
So maybe Mommy will drive Kevvy to court, but will she lie for him under oath? Inquiring minds want to know.
Can they plead the 5th? You bet they will try.
Quoted from MrBally:Can they plead the 5th? You bet they will try.
From my understanding, Whether he purchased it for her or not, she would not have committed any criminal activity. So, the 5th wouldn't apply to her. However, he could plead the 5th because lying under oath is criminal, and he has stated under oath that he did not purchase it. Therefore, either A.) he didn't purchase, isn't lying, and doesn't need the 5th, or B.) he did purchase it, lied under oath (crime), and doesn't want to testify against himself, and the 5th applies.
Pertinent part of the 5th Amendment - No person... "shall be compelled in any criminal case to be a witness against himself"...
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