The Hammer Comes Down on Koenig's Bankruptcy

Post and video by the Hawthorne Hawkman, audio from a Koenig bankruptcy proceeding.

A whole series of Koenig bankruptcy documents have come my way, and they are quite revealing. Based on what I can piece together here, it looks as if the United States Federal Credit Union essentially forced Koenig into bankruptcy by demanding he either pay them the $1.1 million owed or demonstrate that he does not have funds for a payment plan.

The bankruptcy appears to be involuntary, and was in fact discharged.  Only after that did other financial dealings come to light.  Yet Koenig was less than forthcoming with the trustee regarding his finances.  After the discharge, the case was brought back to life.

The audio file posted here was from a hearing where the judge ordered Koenig's attorneys to cooperate with the trustee.  He brings the hammer down quite convincingly, I might add.

For those who would rather spend seventeen minutes on Youtube watching "In a Gadda Da Vida," a quick summary follows...

Bankruptcy Proceedings About to Land Notorious Slumlord Paul Koenig in Financial Hot Water!

Post and illustrative stock photo by the Hawthorne Hawkman.

An anonymous commenter recently made readers of this blog aware of the fact that Paul Koenig, the slumlord behind Dream Homes, Pamiko, and a host of other slummy LLC's, as well as a failed attempt to keep his foreclosed properties for $1 apiece, can't even go through BANKRUPTCY without getting into more financial difficulty.

The man at one time owned eighty or more properties in north Minneapolis alone, and used this community as a cash cow to feed an extravagant lifestyle of motor homes, racehorses, and a mansion in Afton.  Oh how the mighty have fallen.

Documents are coming into my hands from a source associated with the Johnny Northside blog.  Two such docs are already here; one is a Notice of Removal transferring Koenig's bankruptcy proceedings to a different court, and the second is an Unlawful Detainer Koenig filed at his (now rental) property at 1775 Majestic Pines Trail, Afton MN.

I'm not an attorney nor have I ever declared bankruptcy, so what follows is a layman's reading of these documents.  However the very first time I noticed something odd about the Pamiko property empire, I posted what it was that I did know in hopes that more information would follow.  I'm employing the same strategy here, and eagerly await more documentation.

Let's jump in, shall we?

Marcus Harcus Suspends Campaign

Post by the Hawthorne Hawkman, image from Marcus Harcus' campaign website.

On July 2 Marcus Harcus, the only DFL candidate on the ballot against incumbent Joe Mullery announced on his Facebook page that he was suspending his campaign.  He posted:

[Marcus Harcus'] name will remain on the ballot, but I have suspended my campaign for State Representative due to a lack of support, financial and management-wise. Yes, there were a few dozen people who committed to volunteering, but I can't manage the campaign and be the candidate at once, at least not without enough money to get the messages out to my community. Many people tell me to keep running... next time, but I'm done. My window of opportunity is closing in 2012. This was a bad year to run due to my personal finance, health and related challenges, but it was now or never for me.

Going forward, I'm focusing almost exclusively on raising my kids, completing my academic goals and integrating into full-time entrepreneurship. I deeply appreciate everyone who made a contribution of time and money. When most people didn't respond to my calls for help, it makes me appreciate everyone who did even more! I often felt like a loser during this campaign, but I'm good because there is success in trying to be the change I wanted to see versus simply engaging in empty complaining about politicians and government. I'll post my final campaign blog tonight or tomorrow @ www.marcusharcus.org

Peace and blessings!

mh

I have been waiting to see if Mr. Harcus would post something more formal on either his campaign website or campaign Facebook page, but no new information has appeared there as of the time of this posting.  Given the importance of knowing who is and is not campaigning for office in north Minneapolis, I elected to wait a reasonable amount of time and then share the announcement.

Although I have supported Joe Mullery in this race, I was surprised and impressed with how well Harcus had run his campaign.  His last push for elected office was not a serious attempt, and even he admitted so.  However, it's pretty rare for someone to make a transition from a political also-ran to a legitimate contender.  I believe Harcus did exactly that.  While he has stated that--win or lose--this would be the last time he runs for public office, I hope that he changes his mind in the future.

Harcus' departure almost certainly clears the way for Mullery to be re-elected.  A suspended campaign isn't the same as completely bowing out, but I don't see how Marcus can get more votes if he's not actively campaigning against a long-term incumbent.  Another possibility is that one of the other handful of challengers could revive their campaign.  But since the filing deadline has passed, they would have to run while asking people to write in their name on the ballot.  Given that all other candidates were eliminated from the DFL endorsement on the first ballot at the convention, I doubt they have the support needed to succeed in such an endeavor.

The least likely but scariest prospect is that the Republican challenger Cindy Lilly could beat out Joe Mullery.  However unlikely that is, he's still got a campaign to run.

Joe Mullery - "Why I Voted Against the Stadium"

Post and photo from Rep. Joe Mullery's email newsletter.

This week Joe Mullery sent out a very detailed explanation about his vote on the Vikings' Stadium bill, and his vote against it.  The letter affirmed my support for him and served as a reminder that I need Mullery lawn signs for my new house.  Mullery's words appear after the jump and are unedited.

Who Would Want to Live at 26th and Penn?

Post and stock photo by the Hawthorne Hawkman.

This was the question most frequently posed to me over the course of a few months when I would tell friends, neighbors, or colleagues that I wanted to buy the house at 2601 Penn, with "Are you crazy?!" and "Do you want to get shot?" as first and second runners-up.  The answer to those questions (yes, a little bit and no, not even a little bit for the 2nd and 3rd ones) is partially that the preservationist in me wanted to be able to say that my house was one that would have been demolished if I hadn't come along.  The house had to be appealing on its own terms, but preservation was an important aspect of my homebuying process.

So much so, that on the day my offer was accepted I was at a Hawthorne Environment Committee meeting, and everyone was asked...

The Fake Police Raid at the Penn House

Post and photo (of the first MPD traffic stop in front of my house since I bought it) by the Hawthorne Hawkman.

For months, I've been itching to tell this story about a fake police raid at my house.  I couldn't do so until after it actually became my house.  Since this is one of my favorite vignettes during the homebuying process, it gets top billing for the post-closing blog entries.

What is a "fake police raid," you ask?  Well, it all started one November afternoon when...

Buying the Penn House

Post by the Hawthorne Hawkman, photo from Mama Askofu.

On Friday June 29th, I became the newest north Minneapolis homeowner when I closed on my house at 26th and Penn.  For a long time, I'd been eying up this house, much like a shy kid in the corner of a high school gym, mustering up the courage to ask someone to dance.  But I was rebuilding my credit and there were many such homes I longed after and couldn't buy.  Almost two years ago, however, the comment thread of a blog post at The Irving Inquisition vaulted 2601 Penn to the top of my list of homes I fantasized about owning.

Part of the desire to have this specific house probably comes from my Quixotic nature.  I'm most intrigued about opportunities especially after someone tells me they are impossible.  Two years ago, saving this house from demolition certainly seemed so.  Because of my preservationist bend, I also wanted to find a house that, were it not for my acquisition, would have likely ended up in a landfill.  Anybody can go out, look at a perfectly refurbished home (or one that never needed refurbishment in the first place), fall in love with it, and buy it.  Not everyone can look at a dilapidated structure in a state of disrepair, envision what it would look like if restored, and take the steps needed to bring the house back to a livable condition.

Since I can see what house would look like when restored, I felt something approaching an obligation to pick out just such a structure when finding my own home.  With the work I've been a part of in turning around crime in the EcoVillage, I also felt less intimidated than others might be about living in an area that still needs crime reduction work to happen.  Furthermore, I thought if I could help turn around a house that many thought was past the point of no return, and that was in an area beset by other problems, then I could show others that it's possible and even desirable to take on such challenges in our community.

I met with a GMHC representative and my Realtor, Constance Nompelis, to look at this house back in the fall of 2011.  The house was boarded, vacant, dusty, cold, in need of significant work, and smelled like several animals had crawled in here to die (which was unfortunately the case).  I walked in, looked at the south-facing picture window, imagined how the sunlight would stream into the home and fall upon the built-in woodwork, and essentially said, "This is PERFECT.  I'll take it.  Don't even replace the windows."

The rehab and closing process took over six months to complete, and brings with it a series of blog-worthy stories I have been unable to publish until now.  Those will come over the next few days and weeks, as well as new home ownership adventures that are sure to present themselves.  My first day in my new home was marked with a small and heartwarming surprise party put on by friends and neighbors.  Others were stopping at the intersection, waving, and shouting their congratulations.  Strangers at the bus stop kept telling me how they've been watching the rehab work with great anticipation, and how they love what's been done.  Even my mother happened to be passing through town and had the chance to welcome me into my new home.  The day couldn't have been better.

Thank you to everyone who helped make this dream happen.