}

Total Pageviews

Thursday, August 14, 2014

SCHLITZ & GIGGLES: Throwback Thursday With The "Crooked Chiropractor", Robert Buckhannon

What do "$0.00" and "$8,750,207.22" have in common?

If you guessed Battle Creek's "crooked chiropractor" Robert Buckhannon, you'd be correct!

According to a report released in late July by Buckhannon's bankruptcy trustee, Brian Shapiro, Buckhannon has paid exactly "$0.00" to the U. S. Securities and Exchange Commission. In 2010, the former Las Vegas resident agreed to pay nearly $1.5 million to settle a federal complaint that he participated in a $34 million investment fraud victimizing hedge fund investors.

Miss Fortune can now confirm the exact amount of Buckhannon's SEC fine ($1,479,600.00) is the amount he still owes the SEC!

The report (shown at left) shows that assets worth $315,300.17 were recovered by Shapiro after Buckhannon filed his now legendary $37 million dollar bankruptcy action in Nevada.

As suspected, most of the recovered assets went for the trustee and attorney fees required...to recover the assets!

But what about that other number:
$8,750,207.22?

The report shows that unsecured creditors filed "timely claims" against Buckhannon, totaling $8,750,207.22


You can see that the list includes the SEC, which is still owed the entire amount of the payment Buckhannon agreed to make to settle a federal fraud complaint.

Zia Shlaimoun
In December 2010, the Securities and Exchange Commission filed suit in federal court in Tampa, Florida, against chiropractor, Buckhannon, and codefendants involved with two now-defunct hedge funds, Arcanum Equity Fund LLC and Vestium Equity Fund LLC.

The SEC said the funds, which worked with investment advisor Imperium Investment Advisors LLC, told investors they would earn handsome profits through conservative investments.

Instead, much of the money was misappropriated, the SEC alleged in its lawsuit.

The defendants from early 2008 through April 2010 "comingled investor money from three separate offerings and then looted and bankrupted the hedge funds by steering millions of dollars to themselves,'' the lawsuit alleged.

For instance, the SEC said Buckhannon was involved in deal to steer $6 million in investor money to Shea Mining and Milling LLC for a project called the "Tonopah Mine.'' Buckhannon, however, didn't disclose he had a conflict of interest because he was a founder of Shea Mining and planned to enter into an employment contract with Shea and receive a share of the firm's revenue, the SEC alleged.

The SEC also complained Buckhannon funneled at least $390,000 of investor money to himself, his father, two brothers, his then-fiance's cousin (the infamous Zia Shlaimoun, who recently scuttled back to London after unloading his Malibu home for a reported $15,000,000) and a friend. The SEC said in August 2008 he wired $60,000 out of a fund account to a jewelry store for the purchase of an engagement ring for his fiance (and now wife) Marlena Michaels and in July 2009 he wired another $80,000 to a title company for the down payment on a Las Vegas home.


Mahany/Humphreville LLC, a California company who invested, sued Buckhannon, Arcanum and Vestium in Clark County District Court in April, charging the plaintiff invested $300,000 in Arcanum in January 2008 based on representations it would receive a 15 percent rate of return.

After Mahany/Humphreville became concerned about the use of its funds, the defendants failed to return the investment as requested, the lawsuit charges.

"The parties formulated a scheme to keep the monies and invest them not in securities but in precious gem mines and other nefarious investments which were not part of the original agreement between the parties,'' the suit charged.


Mahany/Humphreville is listed among Buckhannon's unsecured creditors, with a claim of $3, 255.000.

So ask yourself this: what in the world is this dude living on? 

His looks? Nah!

He's not exactly "Mack Daddy" anymore, and if he were a drag queen, his name might be "Lotta Myles".

Could he have money stashed somewhere...it's possible.

He's reportedly juggling at least two women, flying between Michigan and Las Vegas while waiting for the virtual smoke to clear at the On Deck in Battle Creek.

Something tells Miss Fortune that Kari Sonovich's upcoming trial, heating up out near Sacramento, will have our "crooked chiropractor" making a few trips to the Left Coast.

After all, he is mentioned in the indictment!

1 comment:

  1. http://www.battlecreekenquirer.com/story/news/local/2014/09/17/demolition-begins-deck-sports-bar/15802621/

    ReplyDelete