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Kenerly clears bankruptcy hurdle but could lose home

Kevin Kenerly

Kevin Kenerly

ATLANTA -- Former Gwinnett Commissioner and bribery suspect Kevin Kenerly cleared a financial hurdle Wednesday when a judge allowed the dismissal of his bankruptcy case, but he still faces losing the only asset he has left -- a lavish home in Chateau Elan.

Kenerly filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court, Northern District of Georgia in December, citing less than $50,000 in assets and $3.5 million in debt. Those debts included $1.6 million he owed on the 15,000 square-foot Braselton home, $700,000 for a property in Myrtle Beach, S.C. and roughly $67,000 on three vehicles.

In a hearing Wednesday morning, Atlanta attorney George Geeslin, who represents Kenerly in the bankruptcy matter, said his client now has no unsecured debt, or debts that would allow lenders to seize other assets.

The only asset Kenerly has left is the nine-bedroom mansion, which Geeslin categorized as "way underwater." Kenerly listed the property for sale at $2.8 million. It sits on the sixth hole of the Legends Championship Golf Course and includes a 40-foot pool, four-car garage and spacious home theatre.

After some delays, Kenerly's bank has agreed to discuss a home loan modification that could allow him relief, Geeslin said.

"If the loan modification works out, good," Geeslin told a judge. "If not, (Kenerly) will lose his house."

Attorney David Weidenbaum, representing the U.S. Trustee's Office, said no creditors opposed having Kenerly's bankruptcy case dismissed.

U.S. Bankruptcy Court Judge Barbara Ellis-Monro granted an order to dismiss Kenerly's case.

Kenerly made his career in the real estate business, which was ravaged by housing and financial crises in recent years. His safety net, Chapter 11 bankruptcy, involves a reorganization of a debtor's business affairs and assets.

After 16 years on the board, Kenerly resigned as Gwinnett's longest-serving commissioner in 2010, facing an indictment on a bribery charge. He's accused of accepting a $1 million bribe from a developer for working out a favorable deal for the county to purchase land for a park.

He also faces two misdemeanor counts of failure to disclose a financial interest in two zoning cases dealing with the same developer.

Outside the courtroom, Geeslin said that while Kenerly's legal woes are hardly resolved, "This chapter of it is done." Regarding his overall situation, Kenerly said he's moving forward "day to day." They declined further comment.

In Gwinnett, a motion hearing is scheduled for Sept. 14 in Kenerly's criminal case.

Comments

R 1 year, 8 months ago

Too bad the sitting district 3 commissioner won't return the 3,500 he was given by this man in 2008.

I mean it was a really, really, realy long time ago ...

(4,500 if you count 2006)

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Coolray 1 year, 8 months ago

So he gets away scott free just like all the other financial bandits? No way this man doesn't have millions in stolen loot from shady, corrupt deals stashed all over the place. This is an example of why trust in county government is at an all time low.

Thanks Kevin!

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NewsReader 1 year, 8 months ago

I especially love the "$50K" worth of assets disclosure. What a joke! He has that in sports memorabilia alone. I am curious how he is to continue making payments on his loan modification. I guess we will find out huh!

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R 1 year, 8 months ago

County real-estate my friend

If we could just order him to sell Cool Ray field as restitution at zero commission...

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tightwad 1 year, 8 months ago

Sorry I have no sympathy for this man. I lost my job because of his "dirty" underhand dealings with the Cool Ray field. Let him go pitch a tent on the Cool Ray field.

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Cleanupguy 1 year, 8 months ago

Pretty easy to point fingers now, but why in the Almighty's Name did District voters keep re-electing him, even after SEEING him gambling in Las Vegas (via video recordings) on the developer's dime that was (allegedly) bribing him all the way along? We the People give these folks authority over us, and WE seem to have made awfully stupid and repetitive choices here. WE handed him the keys and turned a blind eye, and it's ALL his fault? Maybe it's time that the miniscule uninformed voter turnout were held accountable?

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mickey 1 year, 8 months ago

Once again I so agree with you!!!!!!!!!!!!

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R 1 year, 8 months ago

Probably the same type that will vote Mike B even after this one of many gems ...

Something that happened in 2008 was a long, long time ago while in the process of NOT directly answering the original question?

No one else has control here at all; truly it’s just the candidate himself.

http://dacula.patch.com/articles/audio-listen-to-the-district-3-candidates-answer-questions-at-forum

“Question from Oberholtzer to Beaudreau: Don't you think you should return campaign contributions from Kennerly?”

http://soundcloud.com/daculapatch/001-a-029-kristi-z0000355 And the Beat goes On..... the Beat goes on...

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Gundoctor1 1 year, 8 months ago

Man I sure do feel sorry for old Kevin. Don't you???? Poor boy. where will his next meal come from??

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CD 1 year, 8 months ago

The last I heard he was working for a small firm that does business with the county. No surprise there. I would not be surprised to find out that Lasseter ends up running a "non-profit" drug rehab center, funded in part with county taxpayer dollars. The Gluttonous Heathens always take care of their own--usually at taxpayer expense.

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kevin 1 year, 8 months ago

If this were you or I, our house would be in foreclosure. Being he is a real restate crook, they will give him a pass. Since he won't be in bankruptcy, he should be made to repay what he stole plus interest. What joker needs a 15,000 sf house? Does he think he is a movie star? The people must make note of the judges that have been involved in this case so they do not get re-elected again or we need to put pressure on the politician that appointed them to their post. Kenerely is laughing at every single one of us. A crook gets off scott-free. Since he is not bankrupt, he must have a lot of hidden cash after all this time running around free. Why aren't the creditors taking his land and other needless assets? They are all together in this believe me. Kenerly is one of "the boys" tat can do whatever he want to do and get away with it. He should be banned from politics.

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Coolray 1 year, 8 months ago

Why doesn't KK sell his house to the county or the school system for 20 million dollars? There is precendent for both wildly overpaying for land to help friends and relatives. Better yet, he could just offer it as a place for the Falcon's to play and get 100 million for it.

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Dubbin 1 year, 8 months ago

I want to know how he is paying for the high end lawyers?

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R 1 year, 8 months ago

How'd he do it? He didn't - YOU DID! If you lived in Gwinnett prior to 2008...

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newresident 1 year, 8 months ago

Well here it is again. Someone has to be paying his bills and legal fees. The whole time he has been going on big vacations all over while under bankrupcy. He was able to continue on with his regular life that I or any normal person could have done. Makes you think that maybe there are persons who are assisting him with money so that he will stay quiet about all the truth of Gwinnett County government and their commissions that run things behind the scenes. As I have been told by many older people who have lived here for years, the government is just dirty and crooked. This proves it out fully along with the other cases that have occurred. I just wish that they would continue to investagate deeper into these allegations and spread into the appointed commissions since they control high dollar functions in many cases with contractors very willing to pay money under the table to do work. And some people wonder why so many today have no faith in their elected officials. Things like this shows exactly why.

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Basscat 1 year, 8 months ago

Is it time for lunch yet? I think I am getting hungry....

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