Bankruptcy trustee says Nanuet broker hid casino money and yacht sale

“The debtor unnecessarily made the work of the trustee prohibitively difficult”, indicates the complaint. Fred Stevens, the trustee, filed adversarial proceedings against Joseph A. Brown on July 2 in U.S. bankruptcy court, Poughkeepsie, asking a judge to dismiss Brown’s petition to pay off his debts.

Brown has had numerous opportunities to produce records or modify false statements, Stevens said, but “failed to do these things and failed to contact the trustee.”


Trustees monitor bankruptcy cases to ensure the integrity of the process.

Brown, of Rock Hill, Sullivan County, filed for personal Chapter 7 bankruptcy protection last December. He declared $ 21,910 in assets and $ 690,536 in liabilities.

He has operated a Re / Max real estate franchise in Nanuet since 2019. Previously, he headed Joseph Anthony Brown Realty, Prestige Realty Sales Corp. and Prestige Auto Sales, all in Goshen, Orange County.

Brown reportedly did not disclose that he owned the property in Rock Hill where he lives, the contents of a storage unit or the transfer of a $ 175,000 yacht within two years of filing for bankruptcy.

Brown collected money from ATMs at Resorts World Catskills Casino in Monticello and Borgata, Harrah’s, Hard Rock, Ocean and Tropicana casinos in Atlantic City from September 2019 to November 2020.

Stevens says Brown did not disclose gambling losses or explain “the use and dissipation of more than $ 26,000 in cash withdrawn from ATMs at various casinos” in the months leading up to the bankruptcy filing.

Brown “vehemently denied” using the money to gamble, Stevens said. Instead, Brown said during questioning that he paid for gasoline, meals, drinks, shows, a gift for a girlfriend, “maybe pay for the lady’s dinner”, then went home with most of the money.

Regardless of whether Brown was truthful about the casino’s withdrawals, the complaint states that “his explanation for the use of the funds is grossly flawed.”

Hudson Heritage Federal Credit Union also filed adversarial proceedings last month asking the court to declare Brown’s debts cannot be discharged.

Brown borrowed $ 30,685 in 2018 and secured the loan with his 2005 Meridian 459 Cockpit Motoryacht.

He only made two monthly loan payments, according to the complaint. Then, in 2019, he sold the yacht to an individual who gave Brown approximately $ 5,000 and “forgave an indeterminate amount of money owed by Brown”.

TD Bank was paid $ 90,000 to satisfy a lien on the yacht, according to the credit union, and TD Bank forgave $ 109,513 Brown owed.

Stevens accuses Brown of failing to produce financial documents and information, taking false oaths, withholding information, failing to explain the loss of assets resulting from casino withdrawals and refusing to obey a subpoena .

Hudson Heritage Federal Credit Union said Brown owed $ 42,841.

Brown’s bankruptcy attorney David Hannihan of Florida, Orange County, did not respond to a request for his client’s version.

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