BRIDGEPORT — The previous president of a Milford strip club instructed a judge that an $87,000 verify he cashed from a reputed mobster months prior to he declared personal bankruptcy is a “red herring” that does not involve a lot more investigation.
But the decide disagreed Tuesday throughout a hearing in federal court docket, granting a ask for from a Division of Justice attorney for far more time to collect data and evidence in the situation of Joseph Regensburger, who ran Keepers Gentlemen’s Club on Woodmont Street when it misplaced a lawsuit from 6 unique dancers indicating they were not compensated a minimal wage or for time beyond regulation.
Quickly just after shedding the case, Regensburger filed for personal bankruptcy in federal courtroom. There, a attorney representing the dancers stated financial institution documents he subpoenaed clearly show Regensburger cashed countless numbers of bucks in checks signed by Gus Curcio, a previous reputed mobster associated with the club, from a constrained legal responsibility corporation he controls.
The checks totaled “well around $100,000” inside the just one-year search-back period afforded to authorities in bankruptcy scenarios to investigate a debtor’s belongings, in accordance to a filing from Holley L. Claiborne, a federal lawyer symbolizing the United States Trustee, which oversees bankruptcy circumstances.
In his own filing, Regensburger said that at minimum 1 of the checks he signed — dated June 11, 2020 and produced out to “Cash” for $87,000 — is a “red herring.”
Which is since Regensburger stated the resources from the verify, from the Curcio-connected LLC called Majestic Management, “were immediately deposited” at the exact same financial institution to an account for a various LLC linked to Curcio, Millennium Group Administration.
Regensburger described himself as a “runner” for the businesses.
“The (United States Trustee) does not need more time to examine anything in order to file a motion to dismiss or an objection to a discharge,” Regensburger wrote to the court Jan. 12.
Claiborne did not remark on Regensburger’s clarification at Tuesday’s hearing, but requested Judge Julie Manning for far more time to obtain information and facts.
“The U.S. Trustee thinks it is suitable for concerns to be asked of Mr. Regensburger and solutions to be acquired about what took place to those monies and what ended up the intent of individuals cashed checks,” she explained. “We require some time to investigate that.”
Questioned by the decide why he objected to Claiborne’s ask for, Regensburger reported, “I assume this has been heading on for a extended time.”
He referenced his penned objection but mentioned he did not remember what he experienced published in it.
So the choose examine it again to him, noting that in his submitting he claimed he simply cannot afford to pay for a law firm and is “at a complete decline as to how to commence.”
“When you file a (personal bankruptcy) case, sadly, you are publishing you to this court docket and to steps that other parties can acquire less than the personal bankruptcy code,” Manning explained to Regensburger. “One of the matters creditors are entitled to do beneath the bankruptcy code is search for objection to the discharge of a debtor.”
The judge observed that the information and facts about the checks produced out to dollars only came to mild not too long ago.
“Because they just found this information and facts, they have a right to explore it a minimal bit,” she stated, noting that if the U.S. Trustee files a grievance in the situation, the stress will be on them to confirm any allegations they make.
“Unfortunately we’re nonetheless at a level where the scales suggestion much more in favor of the U.S. Trustee than they do of you suitable now with regard to this facts,” Manning claimed, saying she would be continuing the scenario to April. “I’m heading to grant their motion above your objection and we’ll see what comes about.”
Kenneth Krayeske, a law firm symbolizing the dancers, mentioned he has a deposition of Regensburger scheduled for Feb. 9 in Bridgeport. A March 8 listening to is also scheduled in the individual bankruptcy situation.
He told the decide he appreciated her extending the situation soon after indicating he was “extraordinarily confused” by Regensburger’s explanation.
“For the everyday living of me I never fully grasp why you would negotiate a examine to money and then straight away deposit it at the similar lender in the account of a company that is at the very same bank,” he explained. “Instead of generating the verify out to income, why did not they make out the check out to Millennium Team Administration and just have Mr. Regensburger deposit it? It baffles the creativity as to why they would do that.”