Archive for ‘Plein Updates’

January 2, 2013

Kenneth Plein Arrested

Kenneth Plein of Tri-Star Realty has been arrested and charged with five counts of theft, thirteen counts of sale of unregistered securities, as well as fraud and sale of securities by an unregistered agent. Mr. Plein was indicted on November 8, 2012, and a warrant was issued for his arrest on December 13, 2012. His pre-trial conference is currently scheduled for February 5, 2013.

A picture of his mugshot can be located here, and you may follow his criminal case developments here by searching for his name. Our firm represents several creditors who were victims of Mr. Plein’s alleged fraud schemes, and we know that many of our clients will be comforted to hear that Maricopa County has brought criminal charges against Mr. Plein.

October 19, 2012

October 2012 Plein Update

The Trustee in the Plein Matter is still in the process of finalizing liquidation of assets and processing of claims on behalf of the Bankruptcy Estate.  Part of the wrap up of the Estate was the filing of Adversary Proceedings (i.e., Complaints) against any parties that received checks from Plein within the two years immediately preceding the filing of his Bankruptcy Petitions on behalf of himself, his late wife, and Plein Enterprises.  The Trustee has previously determined that, at the time of filing, and for a period prior to his filing, Plein was not running a business, but rather a “Ponzi Scheme”, wherein he was taking money from new investors and paying some of those funds to investors and keeping the rest. 

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June 29, 2012

Plein Update RE: Trustee’s Omnibus Objection to Secured Claims

The Bankruptcy Trustee is in the final stages of liquidating/abandoning the remaining assets in the matter and will be doing a final analysis of the remaining claims. The attorney for the Trustee will be filing a Notice advising all of the creditors (including all of our clients) that the Trustee will be asking for all remaining secured claims to be reclassified as unsecured. What this means is that those clients that have not been paid on their claims will all be grouped together in the unsecured class and will be paid a prorate distribution out of the remaining funds after the bankruptcy estate has been liquidated. For those clients that have been paid out of the sale of a specific property, there will be no further distribution as to the secured claim against the property that was sold. If you were not paid anything, or just a nominal amount to clear a lien, your claim will be part of the unsecured distribution.

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May 9, 2012

In Summary, Our Efforts in Plein Thus Far

As many of you are aware, the financial scam perpetrated by the Pleins was extensive and involved hundreds of victims.  In addition to the hundred plus investors, there were dozens of tenants and hundreds of unpaid creditors.  Most of the properties were poorly maintained and there were constant emergent situations  that required application by the Trustee in Order to get repairs approved.  There have been approximately 1,000 filings docketed with the Bankruptcy Court in this matter, and we have forty-two claimants, which means we have received over 42,000 mailings in this case in addition to the thousands of e-mails that have been sent and the countless phone calls.

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March 15, 2012

Plein Update (March Email Blast)

We’ve received electronic copies of over 6,000 pages worth of documents. We are still in the process of reviewing the thousands of pages of financial and other related documentation that the trustee’s attorneys provided to us this past month to see what, if any, recovery may be available outside of the bankruptcy. We are still working with the trustee to try and either sell or allow clients to take title to the many properties within the bankruptcy estate. The trustee is dictating the schedule of which properties are addressed at which time, and we are in contact with those clients who are on the trustee’s current list. At the end of this process, as the estate winds up, we’ll know what, if any, recovery within the bankruptcy estate is available to our clients that had unsecured liens. As always, feel free to contact our office with any questions or concerns.