The long and winding saga of the KSL Media bankruptcy continues as former CEO Kal Liebowitz’s kids are being dragged into the mess.
Last month Sandra McBeth, who is the Trustee overseeing Liebowitz’s personal bankruptcy (which is separate from the KSL Media case) sued him for trying to hide assets totaling $200,000 in the trust of his disabled son, Keith. McBeth also asserted that Kal Liebowitz tried to cover up what she termed was a “fraudulent transfer” by lying about the circumstances concerning the maneuver under oath at a hearing in February.
The assets in question are in an account administered by Morgan Stanley which was frozen after McBeth filed her complaint. By then however, Kal Liebowitz had already “borrowed” (McBeth used the term “sham loans”) $50,000 from his son’s trust. The judge overseeing the case has now granted McBeth a temporary restraining order barring any further movement of assets from the Keith Liebowitz Trust until after a hearing scheduled for May.
McBeth won the TRO after Tyler Liebowitz -- brother of Keith, who serves as the Trustee of the Keith Liebowitz Trust -- attempted to have the trust unfrozen. McBeth argued that the move indicated that “the Keith Leibowitz Trust intends to transfer, conceal, encumber, or assign those assets and that they will not be available to satisfy any fraudulent conveyance judgment” that McBeth might obtain.
The Judge agreed and issued the TRO prohibiting Tyler Liebowitz or his agents or representatives from “disbursing, transferring, concealing, encumbering, or assigning assets of the Keith Liebowitz Trust” until after the May hearing.
Separately, the Bankruptcy Court has given McBeth permission to hire a real estate agent to put up for sale Kal Liebowitz’s home in West Lake Village, CA. It has been valued at about $1.8 million, and according to Liebowitz’s bankruptcy filing, has two mortgages against it. That filing also estimates the former KSL executive’s personal liabilities to be about $4.8 million.