U.S. District Court trustee James Westenhoefer has recovered property that was identified in the Kay Brown bankruptcy case which she had previously asked for and was denied exemptions.
Westenhoefer wrote a letter to Brown’s daughter, Jennifer Hutchinson, last Thursday thanking her for assistance in recovery of property.
“I was in Paintsville on Sunday and Monday in order to see first hand what was missing and do my best to get the property back,” Westenhoefer wrote. “The reason we went to your Uncle Carl Kirk’s office building in Louisa was that law enforcement had indicated the furnishings might be there. I had a duty to verify the location for myself. As you know, this is where the property was being stored.”
Westenhoefer added that the garage at Kay Brown’s Robin Hill property was cleaned out and all of the returned items and other items from the house are now there.
He added that some of the personal effects that were not returned to the garage were taken to the Ramada Inn and could be picked up there.
The Robin Hill house has been directed to be sold to Paintsville doctor, Loey Kousa.
The purchase price for the property was $525,000.
Kay Brown purchased the property in July 2009 for $800,000 and had it filed solely in her name. There was no mortgage filed on the property, according to court documents.
Westenhoefer filed the notice of intent to sell with the U.S. District Court on Oct. 25.
The trustee noted that the initial sale included furnishings. However, due to Kay Brown allegedly having violated a bankruptcy court order concerning exemptions by taking many valuable household furnishings from the home, but which have now been recovered, Kousa withdrew the bid that included those furnishings.
Stewart Auction and Appraisal, which was hired to conduct the sale of the property, stated in a letter to Westenhoefer that the $525,000 bid is recommended.
“Given the fact that this is an executive-type home with amenities that few people in this area have the resources to afford, we recommend that Dr. Kousa’s offer be accepted,” stated John Stewart and Brenda Stewart, auctioneers.
Kay Brown, wife of former Cynthiana mayor Jim Brown, filed Chapter 11 bankruptcy in Jan. 2012. It was later amended to Chapter 7.
Prior to the bankruptcy filing, Kay Brown is alleged to have transferred several million dollars of certificates of deposit and real estate from Jim Brown as well as the purchase of the Paintsville home with her husband’s monies.
Jim Brown has filed for divorce in Harrison Circuit Court.