Bankruptcy Judge Orders Victim To Pay A Thief
As reported on msnbc.msn.com, a Bankruptcy Judge in St. Louis ordered a larceny victim to pay damages to the thief who stole from him for violating the automatic stay, and to make matters worse, the victim had to pay the thief's attorney's fees. Obviously, there is more here than meets the eye. The victim, Mark Poveromo, had hired the thief, Mark R. Koch, to build a building. Koch received half the money up front and never started building. In Southwest Florida, I don't think that is a crime anymore. Anyhow, Poveromo filed a criminal complaint, and Koch was convicted of larceny and ordered to pay restitution.
Prior to the conviction, Koch filed for bankruptcy protection in St. Louis, thereby triggering the automatic stay provisions of the United States Bankruptcy Code. The article states that Koch paid $25,000.00 although it is not clear when this money was paid, so, he may not have been a bad guy after all. The article also is unclear as to whether Poveromo received any type of notice about the bankruptcy. "Poveromo says notices of the bankruptcy filing was sent to Poveromo's old business address and he didn't see them." I think this is highly unlikely and needs to be explored some more.
The Judge found that Poveromo intentionally violated the automatic stay by having Koch arrested when he failed to pay on the debt. I would agree with the Judge on this point, as the Code states any act to collect on a debt. Here, Poveromo clearly sought court intervention when Koch failed to pay. Even if the debt was going to be discharged, although I highly doubt that, a creditor cannot intentionally violate the automatic stay.
Although it sounds highly suspect, I am sure that there is more here than we are reading. Bankruptcy Judges do not find intentional violations of the automatic stay without conducting a hearing and taking evidence. As former President Ronald Reagan used to say: Trust, But Verify.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, and Naples and has expansion plans for Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's bankruptcy blog. As former President Ronald Reagan used to say: Trust, But Verify.
