Prominent Sydney insolvency specialistAndrew Wilyis developing a taste for pursuits a bit more bloody that personal bankruptcy.

AFSAs register of bankruptcy trustees reports that Wily is not accepting any new appointments.

This follows his battle late last year with Timbercorps liquidators, who applied to have Wily removed as trustee of banned Timbercorp spruikerPeter Holt.

But Wily denied the Timbercorp episode had anything to do with him handing in his licence, when asked by bloggerSydney Insolvency News.

British Columbians remain particularly vulnerable to debt thanks to a lack of both awareness and debt settlement options.

On Monday, the Sands and Associates released their third annual BC Consumer Debt Study, and this year, they found that overextension of credit and financial mismanagement was the number-one cause of financial distress.

Interestingly enough, 57 per cent of study participants felt they had a good or excellent grasp of financial skills and concepts, however; only three per cent correctly answered a series of questions pertaining to debt and debt solutions.

Of the three per cent who did answer correctly, they seemed to have learned from their past mistakes, as all had previously filed for personal bankruptcy or consumer proposal.

Moreover, nearly 65 per cent of respondents analyzed for the study said making only the minimum payments on their debt indicated to them that debt was becoming a problem.

Albeit a provincial problem, the study found a significant amount of debt accumulation to be derived throughout Vancouver and the Fraser Valley.

The high cost of living in BCs lower mainland combined with attempting to service debt at unmanageable levels often leaves people reaching out for solutions in the wrong ways. The need for consumers to become better educated when it comes to debt management tools and identifying warning signs that could reduce their personal distress and financial difficulties is very real. Too many British Columbians are driving blind when it comes to debt, said Blair Martin, Vice-President of Sands and Associates.

Martin warns that consumers should take a closer look at their finances. If debt payments are higher than roughly ten per cent of a monthly take-home pay, consumers should investigate whether professional debt assistance is necessary, said Martin.

The study looks at factors causing financial difficulties, strategies used to resolve debt, and knowledge of consumers. Sands and Associates is BCs largest firm of licensed credit councellors.

In
December of last year David Gottlieb, Trustee for the KSL Media Estate, sued three of the bankrupt media agencys former leaders for gross negligence — derelictions that Gottlieb alleged were
largely responsible for the companys demise.

Now the trio has responded, basically saying that all of their actions were proper and that it was the actions of other unnamed persons that led to the companys downfall.

The three
former KSL executives — founder Kal Liebowitz, former CEO Hank Cohen and former CFO Russell Meisels are represented by different attorneys although their responses to Gottliebs allegations are
very similar. And each asked the judge hearing the case to toss Gottliebs complaint.

In each instance the three former agency executives cited a not me defense, stating:
Because of the conduct of persons and entities other than defendant constituted the intervening and superseding cause of all damages alleged in the complaint, the Trustee cannot recover on the
claim for relief alleged.

Cohen and Liebowitz also used identical language in their separate replies asserting that they at all times relied upon the business judgement rule and
acted in good faith in dispatching his duties to KSL and acted in its best interests.

Meisels used similar verbiage declaring that he at all times acted in good faith, was not
grossly negligent and did not violate any duty of loyalty to KSL.

The trio of former KSL managers also cited a number of technical reasons why Gottliebs suit was flawed,
including an unreasonable delay in filing the complaint and statutes of limitations.

Gottlieb sued each of the former KSL executives for a minimum of $6 million (possibly more depending on his
continuing investigation into the agencys demise) for gross negligence and breach of their fiduciary duties while running the media shop.

KSL Media filed for bankruptcy in September of
2013, although Gottlieb alleged in his suit that the agency was insolvent for years before going belly up and that at least since 2006 the firms survival depended on its use of prepaid ad
dollars from clients to fund expenses and operating losses.

Shortly after filing suit against Liebowitz, Cohen and Meisels, Gottlieb struck a deal with former KSL Client Cumberland Packing
Corp. — marketer of Sweet lsquo;N Low — under which the company agreed to return to the KSL Estate $1.75 million of a settlement originally paid to the company by the agency in order to
settle claims that millions in pre-paid advertising dollars had been used for other purposes by the agency when it was still in business. Gottlieb, who first petitioned the bankruptcy court to force
Cumberland to return the money, termed the deal a fraudulent transaction.

According to court papers, Liebowitz and Cohen both received payments linked to that settlement and
signed so-called negative covenants making them liable for any portion of the original $7 million in settlement money not paid to and retained by Cumberland.

Since leaving KSL
Liebowitz has filed for personal bankruptcy. He has operated a
consulting company and a barter trading company, Eworld Asset Trading, which in court papers Liebowitz indicated was being dissolved.

Since 2013 when he left KSL shortly before its bankruptcy
filing Meisels has been CFO at a Beverly Hills, CA firm called Mob Scene Creative + Productions.

And Cohen, who left KSL at about the same time Meisels did, formed a new media agency called
Windstar Media — described as a full service omni-channel media planning and buying company, that has the backing of the InterMedia Group of Companies. Earlier this year, WindStar
reported winning two new clients including Jim Fannin Brands, run by motivational coach and speaker Jim Fannin.

Windstar also said it won the media account for Health First Nutrition, which is
launching a product called EyeComplexCS Nutraceutical.

Though Talley said in a suicide note hed been stealing company funds for at least seven years, the $1.3 million Smiley seeks is from the past four years, the lawsuit notes, and lists dozens of checks made out to Talleys wife and children or their benefit.

Cheryl Talleys attorney, Lee Kutner, did not offer any comment on Smileys allegations.

The lawsuit is the latest in Smileys efforts to recoup millions of dollars he said Richard Talley drained from the apparently successful company, mostly for himself but also to pay professional debts with other insurance companies he represented.

Smiley said Cheryl Talley knew as long ago as 2002, when Richard Talley filed for personal bankruptcy, that he had financial troubles.

In that bankruptcy, Talley listed debts that arose from a pair of business partnerships he had GC Funding Inc. and Buycor Inc.

Records show his partners in those ventures James Taylor and Jeffrey Parsley each would plead guilty to separate federal fraud charges apparently unconnected to the businesses.

A third partner, William Krieg, would later become ATSs controller and admit in the bankruptcy case that he knew of Talleys embezzlement.

Taylor pleaded guilty to felony wire fraud in January 2013 he had been on the run for more than five years for his part in obtaining phony mortgages and was ordered to pay nearly $200,000 in restitution, US District Court records show.

Parsley was disbarred as an attorney in Colorado after he pleaded guilty in 2005 to felony bank fraud tied to a phony mortgage he took on his parents home and pocketed the cash, records show.

Also, Smiley said Richard Talley in 2000 had transferred his interest in the couples home near Cherry Creek State Park to his wife, but didnt reveal it to the bankruptcy court as is required.

Talley committed suicide Feb. 4, 2014, in the garage of the house because, according to a typed note, his years of financial fraud had been exposed and he feared prison.

Central to the ATS bankruptcy is the beneficiary of a $1 million life insurance policy on Talley. He had mailed a request to switch the beneficiary from ATS to his wife the day before he died. The insurance company has asked the federal court to determine who will get the cash. Smiley said in the claw-back lawsuit that ATS funds were also used to pay premiums on a life insurance policy for Cheryl Talley.

In June 2014, Cheryl Talley sold the couples house for $650,000, Arapahoe County property records show, then paid $365,500 months later for a home in east Denver, county records there show.

Smiley alleges funds from those transactions also belong to ATSs bankruptcy and its creditors.

The trustee said Cheryl Talley additionally profited from her husbands scheme by selling a pair of properties last year that had been owned by companies Richard Talley initially controlled Peregrine Hollow and Swift Basin and for which records show she took command after his death.

Smiley said Richard Talley also purchased property in West Lafayette, Ind., then transferred its title to his wife and children in mid-2013.

Smileys lawsuit is the latest in a number of revelations and twists that have surfaced since Talleys suicide. Last week Smiley filed a different claw-back lawsuit against Title Resources Guaranty Co., a Texas insurance underwriter for whom Talley sold title policies, alleging it had unfairly ensured it would collect on Talleys debts before other creditors by taking control of its books.

It was TRGCs auditors who uncovered Talleys wrongdoing. They were to meet with him the day he died.

TRGC filed its own lawsuit last year alleging it is still owed at least $2 million it said Talley misappropriated. TRGC said it had not found anything to implicate Cheryl Talley. A grand jury was impaneled after Talleys death, but no charges were filed in that inquiry.

Employees have filed claims that money withheld from paychecks and earmarked for retirement accounts never made it there. The US Department of Labor filed a lawsuit on behalf of those employees, and a settlement is said to be forthcoming.

Several ATS customers filed bankruptcy claims saying escrowed funds due them from the sale of houses they owned were never sent to them.

David Migoya: 303-954-1506, dmigoya@denverpost.com or twitter.com/davidmigoya

US Attorney Thomas Delahanty on Sunday filed into the courts electronic record system the lawsuit, seeking to enforce $271,979 worth of penalties assessed by the Occupational Hazard and Safety Administration after inspections in 2011.

The lawsuit alleges that Downeast Construction owner Ryan Byther has not paid or contested any of the penalties and seeks a judgment from the court for the cost of the assessed penalties and interest since the inspections.

Federal officials attempted to deliver notifications of the penalties to Byther around their assessment in 2011, according to the lawsuit, but later discovered he was in prison on charges of theft by deception and left the notification of penalties at his residence.

He was sentenced in 2012 to a six-month prison term after being convicted of bilking a York County American Legion post out of $50,000 and using a portion of it to open a bar in Portland.

The Waterville Morning Sentinel reported that Bythers company was conducting the demolition until July 2011 when workers told federal officials the company was improperly disposing of asbestos from the building.

The EPA inspected the building later that year and worked with the Maine Department of Environmental Protection to hire a new contractor to finish removing the asbestos.

The site has been the subject of legal battles in county court with owner Adam Mack, a former state representative for Standish, who filed for personal bankruptcy in December 2014 as the town sought a court order to demolish the building.

If left unchecked, drug spending growth of this magnitude could be unsustainable. In 2013, IMS Health reported that US spending on medicine clocked in at about $329 billion.

If spending increases by 13.1% per year over the next 20 years, the amount spent annually on prescription medicine would surpass $3.8 trillion (yes, with a t).

Taking matters into hand
Such a surge in drug spending would undeniably put patients at risk. Medical costs are the biggest reason for personal bankruptcy, particularly among patients with diseases like HIV and cancer.

In an attempt to blunt the risk to the system posed by runaway drug costs, pharmacy benefit managers, or PBMs, like Express Scripts and CVS Health (NYSE: CVS) — the two largest PBMs — are rethinking how they pay for drugs.

In December, Express Scripts negotiated a steep discount to AbbVies (NYSE: ABBV) new hepatitis C drug Viekira Pak by offering exclusivity. In January, CVS Health similarly orchestrated a discount for Gilead Sciences (NASDAQ: GILD) competing hepatitis C drugs, also in exchange for exclusivity. Express Scripts estimates that its deal with AbbVie will save its clients $1 billion annually.

In addition to more aggressive price contracts with drugmakers, healthcare payers are also developing programs that can increase patient adherence to medicine to lower the risk of costly future healthcare events, as well as programs to increase the use of generic alternatives.

PBM programs that increase the use of lower cost generics could prove to be critical. Despite biologics difficult-to-copy nature, technology advances are helping generic drugmakers develop biosimilars. While not exact copies, these biosimilars deliver similar efficacy to their brand name counterparts. So far, biosimilars have been a bigger story in Europe than in the US; however, the FDA approved its first biosimilar this month when it gave Novartis Sandoz unit the go-ahead to begin marketing its biosimilar of the top-selling cancer drug Neupogen. That approval is likely to be the first of many over the coming years.

Looking ahead
The financial stakes are high for patients and drugmakers. If prices are too low, it could force drug developers to focus only on diseases that offer the biggest payoff. That could derail advances in a range of orphan diseases. However, if prices for medicine continue to grow at this rate, its unlikely that the system will be able to afford it. Clearly, a middle ground is not only necessary, but in the best interest of everyone. Finding that middle ground, however, may remain difficult. 

Boynton said volunteers in schools must submit to criminal background checks. But committee volunteers have never had to submit to criminal and financial background checks.

These volunteers will not have direct access to the money and will not be dispersing funds in any way, Boynton noted.

She added: The newspaper is doing a very good job looking at the applicants.

For each applicant, the Star-Banner checked Marion County court records, which show local arrests, criminal prosecutions and lawsuits; the official records recorded with the court clerks office, which include judgments, liens, court orders, deed transfers, mortgages and such; and federal bankruptcy court records.

The purpose: to bring to light any financial situations that might be relevant for the School Board to consider as it selects committee members.

One candidate withdrew his name from consideration when the paper asked him about his bankruptcy and arrests. This was before any story was published.

A second candidate, Carol Vought, withdrew on Wednesday after the Star-Banner inquired about her personal bankruptcy, which was made final less than a year ago.

A third, Paula Chaffin, withdrew on Friday afternoon, a few days after being asked about a 2010 foreclosure action.

Two other candidates have remained in the running after the paper inquired about financial troubles.

Marion Andy Lazar said his personal bankruptcy case, finalized in January, happened because he wound up paying mortgages on two houses. He tried to sell one but got caught in the housing slump.

Heidi Maier, whose bankruptcy was made final earlier this year, said she has learned life lessons some easier than others through the years. She hopes the School Board considers candidates strengths, experience and ideas when it fills the committee roster.

The School Board will choose 15 of the 71 remaining applicants to serve on the oversight committee. Each of the five board members will choose two sitting members and an alternate. The choices are expected to be made during a work session on Thursday.

Forming the committee was a condition of the 1-mill property tax that voters approved in November. The tax is expected to raise $15 million over four years, and the committee will be charged with oversight of that money.

Three candidates were late additions to the list:

Retired dentist Robert Dreyfus contacted the district when he saw his name was missing from the original list. He proved that his email application was sent to the district three days before the deadline but, for some reason, was not registered.

Virginia Wilson, a vice president with Florida Citizens Bank, sent an email six days before the deadline. But she later learned it hadnt been received because she mistakenly left the . out of the email address.

Robin Williams-Martinezs letter of interest and resume were postmarked Feb. 9, the deadline day.

In addition to the three candidates who withdrew because of the Star-Banners inquiries, a fourth stepped away for a different reason.

Will Thames told the district that he withdrew because he initially applied due to concerns for lack of business community input, but there is an excellent pool, according to an email he sent to the district.

Boynton said volunteers in schools must submit to criminal background checks. But committee volunteers have never had to submit to criminal and financial background checks.

These volunteers will not have direct access to the money and will not be dispersing funds in any way, Boynton noted.

She added: The newspaper is doing a very good job looking at the applicants.

For each applicant, the Star-Banner checked Marion County court records, which show local arrests, criminal prosecutions and lawsuits; the official records recorded with the court clerks office, which include judgments, liens, court orders, deed transfers, mortgages and such; and federal bankruptcy court records.

The purpose: to bring to light any financial situations that might be relevant for the School Board to consider as it selects committee members.

One candidate withdrew his name from consideration when the paper asked him about his bankruptcy and arrests. This was before any story was published.

A second candidate, Carol Vought, withdrew on Wednesday after the Star-Banner inquired about her personal bankruptcy, which was made final less than a year ago.

A third, Paula Chaffin, withdrew on Friday afternoon, a few days after being asked about a 2010 foreclosure action.

Two other candidates have remained in the running after the paper inquired about financial troubles.

Marion Andy Lazar said his personal bankruptcy case, finalized in January, happened because he wound up paying mortgages on two houses. He tried to sell one but got caught in the housing slump.

Heidi Maier, whose bankruptcy was made final earlier this year, said she has learned life lessons some easier than others through the years. She hopes the School Board considers candidates strengths, experience and ideas when it fills the committee roster.

The School Board will choose 15 of the 71 remaining applicants to serve on the oversight committee. Each of the five board members will choose two sitting members and an alternate. The choices are expected to be made during a work session on Thursday.

Forming the committee was a condition of the 1-mill property tax that voters approved in November. The tax is expected to raise $15 million over four years, and the committee will be charged with oversight of that money.

Three candidates were late additions to the list:

Retired dentist Robert Dreyfus contacted the district when he saw his name was missing from the original list. He proved that his email application was sent to the district three days before the deadline but, for some reason, was not registered.

Virginia Wilson, a vice president with Florida Citizens Bank, sent an email six days before the deadline. But she later learned it hadnt been received because she mistakenly left the . out of the email address.

Robin Williams-Martinezs letter of interest and resume were postmarked Feb. 9, the deadline day.

In addition to the three candidates who withdrew because of the Star-Banners inquiries, a fourth stepped away for a different reason.

Will Thames told the district that he withdrew because he initially applied due to concerns for lack of business community input, but there is an excellent pool, according to an email he sent to the district.

Contact Joe Callahan at 867-4113 or joe.callahan@starbanner.com. Follow him on Twitter @JoeOcalaNews.

LOS ANGELES (LALATE EXCLUSIVE) Todd Chrisley and Julie Chrisley were the subject of a report this month attempting to update readers about the Chrisleys bankruptcy proceedings. But the report, in mentioning a settlement proposal, comes up short on the details. Todd Chrisley filed for personal bankruptcy, and his company Chrisley Asset Management also filed for bankruptcy. Both cases got different bankruptcy trustees. And both trustees, in their respective matters, filed lawsuits against Julie Chrisley claiming alleged fraudulent transfer. Julie disputed the same.

Todd Chrisleys personal bankruptcy dispute could be coming to an end, but not the Chrisley Asset Management bankruptcy dispute, LALATE can exclusively report. In Todds personal bankruptcy case, Case Number Case No. 13-56132-MGD, the trustee had claimed that Todd illegally transferred his interest in a former condo to Julie Chrisley. The trustee claimed that Todd and Julie found a buyer of their Georgia condo which they had owned together. “When [Todd and Julie] found a buyer for the Gallery Condo, they planned to transfer the property out of the [Todds] name, in order for [Julie] to use the sale proceeds for her sole benefit. [Todds] interest in the Gallery Condo was transferred to … [Julie for] no consideration …. Instead [Julie] … used all of the sale proceeds to satisfy her separate individual tax debt. Just about four months later, [Todd] filed this bankruptcy case”. The trustee sued Julie seeking to recover Todd’s interest in the $586,300.00 condo as an allegedly illegal transfer by Todd to Julie to defraud a $23 million creditor. Julie disputed the allegations. Now that case has been presented with a settlement offer.

Kyle Chrisley Mug Shot Photos 2013
Kyle Chrisley Mug Shot Photo 1
Kyle Chrisley Mug Shot Photo 2
Kyle Chrisley Mug Shot Photo 3
Kyle Chrisley Mug Shot Photo 4

But a recent report about the Chrisleys fails to mention that Julie Chrisley is being sued still by the second bankruptcy trustee. In fact, the settlement offer in the first case states in clear language that it does not stop the pending ligation against Julie in the second case. The proposed settlement will allow [the first] Trustee [for Todds personal bankruptcy case] to close this case without awaiting for the outcome of CAMs bankruptcy case [Chrisleys Asset Management case] since Trustee [of the first case] is not administering any of CAMs assets or any transfer related to CAM. Julie has until February 12, 2015 to respond to the allegations in the second case.

Julie Chrisley, Todd Chrisley

Before Abraham Lincoln became our 16th US President, he was a business owner — and not always a successful one. His shop in New Salem failed leading to personal bankruptcy. He received a patent for his invention to lift riverboats over sand bars but never got the business off the ground. As a lawyer, he faced challenges with collections.

Despite the setbacks, he went on to become a state legislator, US Senator and an undeniably superb national leader who helped preserve our Union during the Civil War. This Presidents Day, as we celebrate what would have been his 206th birthday on February 12, its time to reflect on the character traits that made him great and how the same qualities can guide small business owners.

Honesty. Lincoln got the Honest Abe moniker because of his reputation for telling the truth and behaving with integrity. In a classic example, he mistakenly took six cents too much from a customer at his store and walked three miles the same day to return it.

The takeaway here is pretty obvious. Business owners who foster a culture of honesty and transparency will build the trust of customers and workers. There can be a surprisingly high cost to telling tall tales. When you exaggerate a metric, under-report an expense or are less than honest with a client or a member of your team, you create a false reality. Eventually, youll have to manage the fallout from inflating the truth.

Perseverance. As a lawyer, Lincoln was persistent, fearless and tireless in his business and political dealings. He never let his failures and disappointments stop him from moving forward.

Failures in business are unavoidable, but they can build character and allow you to learn and grow. A nose-to-the-grindstone mentality will enable you to continue working towards your goals. Committed entrepreneurs know that quitting or succumbing to ones failures is not an option.

Communication. Lincoln had a remarkable ability to communicate his vision and goals, and make his concepts simple and relevant to peoples concerns. He understood the importance of explaining why his approach to problem-solving was the better choice.

Entrepreneurs need to excel at communication, and be loud and clear about their goals. And, it doesnt hurt to be a great storyteller — an ability that propelled Lincoln into the White House. The keys are to know — really know — your audience, and target your message to meet their needs. You may never deliver a message as memorable as the Gettysburg address, but effective communication can help get your message interpreted correctly.

Vulnerability. Lincoln was never afraid to share his vulnerable side. He allowed himself to be photographed in times of great despair and wasnt uncomfortable sharing his grief with the nation when his son, Willie, died of tuberculosis.

In the business world, it can be hard to reveal your vulnerabilities. But accepting and sharing your mistakes will demonstrate that you dont need to be perfect at everything and therefore, neither do your employees. Sharing your vulnerable side can also strengthen connections with your peers and customers.

Lincolns impact on contemporary society is alive and well. Lest you have doubts, consider how often he is quoted! The many positive character traits that Lincoln displayed have the ability to impact all of us, lead to greater entrepreneurial success and serve to inspire the next generation.