U.S. Bankruptcy Judge Alan C. Stout this week ordered the sale of personal property from the Paintsville home of Kay Brown.
Brown, who filed for bankruptcy in January 2012, has been named in criminal indictments in three counties. Her legal issues have spread from several county courthouses to the U.S. District Court and back to the county courthouses.
Documents were filed Monday in U.S. District Court approving the private sale of personal property from Kay Brown’s former Paintsville home.
Approved were the sale of furnishings to Dr. Loey Kousa, who also purchased the Robin Hill Road home from Brown. Kousa paid $16,400 for selected furnishings.
Larry Music of Salyersville bought $2,000 worth of household items.
The remaining items in the house were purchased for $6,100 by Paul Brown of Hager Hill, who is the guardian for James Brown who is listed as the largest creditor for the estate in bankruptcy.
Kay Brown was ordered to turn over property of the estate and to provide an accounting by Jan. 21. The order was for property that had a purchase price over $500, which Kay Brown and/or Jim Brown had purchased since January 2008.
The Browns were married in February 2008. In December 2008, Jim Brown, former Cynthiana mayor and businessman, suffered a stroke that rendered him unable to care for his affairs.
Since that time, his wife has been accused of having Jim’s real estate holdings deeded to herself and cashing in certificates of deposit that were in Jim’s name, despite a prenuptial agreement that stated that Jim would retain sole ownership of the property.
Kay Brown also faces criminal charges in Lawrence and Johnson counties where she was indicted in November and December 2012.
Brown is alleged to have stolen and obtained several millions of dollars by various means including CD’s, monetary gifts, property transfers, and unauthorized purchases using assets of her husband, James Brown, for her personal financial gain.
Kay Brown’s brother, Roger Kirk, also faces criminal charges related to the case.
Kay Brown is scheduled for a three-day jury trial on March 26, 27 and 28 in Harrison County on charges of financial exploitation of an adult (more than $300), first degree perjury and second degree criminal possession of a forged instrument.
She entered a not guilty plea and an attorney was appointed for her in Harrison Circuit Court on Tuesday, Dec. 18.