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Man dubbed “King of foreclosures” busted for bankruptcy fraud

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

 

The foreclosure king has been deposed… or at least arrested.

Milwaukee skyline Charlotte Mecklenburg Bankruptcy Lawyer North Carolina Debt AttorneyTodd Brunner, once dubbed the “foreclosure king” of Milwaukee, Wisconsin, was arrested by “heavily armed federal agents on Monday” during an early morning raid on his Pewaukee home. Agents broke down the 57-year-old Brunner’s door and arrested him and his 24-year-old son, Shawn.

Todd Brunner was charged with eleven counts of bank fraud and four counts of bankruptcy fraud, while Shawn Brunner was charged with three counts of bank fraud and one count of bankruptcy fraud.

The elder Brunner made his fortune in the late 1990s and early 2000s by purchasing hundreds of foreclosed properties throughout southeastern Wisconsin and converting them into rental units. As of 2011, when the Milwaukee Journal-Sentinel reported that Brunner was feeling a “financial pinch,” his companies owned some 200 properties that had an assessed value of $23 million.

Brunner ended up filing for bankruptcy—for the second time—that year, acknowledging some $20 million in debts and listing his real estate assets as well as three boats, a 2000 Porsche Boxer, a 1984 Rolls Royce, a 1918 Rauch & Lang electric car as well as a bevy of other luxury vehicles.

Brunner now stands accused of failing to disclose all of his assets both to lenders and to the bankruptcy court. While Brunner claimed that his “gross and net income from any source” was zero, investigators allege that his rental properties were generating some $30,000 in revenue per month.

Brunner’s initial bankruptcy filing was thrown out by then-United States Bankruptcy Judge James Shapiro, who accused Brunner of having a propensity to blame others for his misdeeds and for portraying himself as an innocent victim. The grand jury that indicted Brunner found that the foreclosure king’s amended bankruptcy filings still failed to disclose all of his assets, and the amended disclosures were made only after the United States Trustee or creditors discovered the assets.

Shawn Brunner became involved in the elder Brunner’s fraud when he created several “shell companies” in his own name. The elder Brunner then transferred “numerous parcels of real estate and various motor vehicles and power boats” to Todd Brunner and the shell companies, in order to hide them from creditors and the bankruptcy court. At the time he created the shell companies, Shawn Brunner was still in college.

Todd Brunner’s financial misdeeds predate his bankruptcy, the grand jury indictment alleges. As early as 2008, he falsified loan documents in order to draw cash on a construction loan. He then submitted checks purporting to show that he used to loan money to pay contractors on a construction project, but Brunner never paid the contractors. Investigators believe he kept the money for himself.

If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC find additional resources here. As professionals who are experienced at handling all kinds of bankruptcy matters, our attorneys will provide you with the best advice for your particular situation.

 

 

About the Author

Bryan 1Bryan Stone is a Partner with Arnold & Smith, PLLC, where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord-tenant issues.

A native of Macon, Georgia, Mr. Stone attended the University of Georgia, where he earned a BBA in Banking and Finance, and Wake Forest University School of Law, where he obtained his law degree.

Following law school, Mr. Stone relocated to Charlotte, where he currently serves as Chair of “Bravo!” – a young professionals organization associated with Opera Carolina – and founded the University of Georgia Alumni Association of Charlotte.

In his spare time, Mr. Stone enjoys perfecting his barbeque skills for the annual “Q-City BBQ Championship” and playing softball in the Mecklenburg County Bar softball league.

 

 

Sources:

http://www.startribune.com/local/279787772.html

http://www.jsonline.com/business/ex-foreclosure-king-todd-brummer-accused-of-trying-to-hide-7-million-b99366870z1-278476041.html

http://www.jsonline.com/watchdog/watchdogreports/buyer-of-foreclosed-homes-in-financial-pinch-131930898.html

 

 

Image Credit:

http://commons.wikimedia.org/wiki/Milwaukee,_Wisconsin#mediaviewer/File:Milwaukee_Wisconsin_7477.jpg

Milwaukee, Wisconsin” by Dori

 

 

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http://www.youtube.com/user/ArnoldSmithPLLC?feature=watch

 

 

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