Michael Brown: Whoops -- I Didn't Really Mean to File for Bankruptcy After Buying That $8 Million Mansion!
The doctors' motion also states that, according to Cave, although SMI owes $10 million in unpaid bills, Brown "purchased $20 million worth of real estate on South Beach, incurred at least $10 million in debt doing so, and then purchased two yachts for which he also incurred significant debt." (In Michael Brown's defense, it's much easier to get hot twentysomething stripper ass when you own yachts.)
The doctors' motion also claims that not even Michael Brown can keep track of all the money he moves around; he allegedly made a $166,500 wire transfer in January to something called Pomegranate Development (or Developers) that he had no explanation for; and a $136,000 January payment to American Express, even though Brown stated in a deposition "that he does not have an American Express card."
Brown similarly had no explanation for a $10,377.55 payment this month to Ray Von Proctor, SMI's chief of staff, according to the doctors' motion.
The motion also states, "In the year prior to bankruptcy, [Brown] drained approximately $6 million out of his tax account; most of those monies were transferred to [his] personal account, but he does not know what happened to them, other than to state over and over again that he has paid a significant amount in attorney's fees."
But according to Brown's motion to withdraw his bankruptcy filing, his companies have suffered financial losses because of "the highly publicized nature" of his divorce proceedings. He then points out that he's paid "$300,000 a month to his wife and his wife's counsel for the past two years. This amount does not include Dr. Brown's payments of the mortgages and upkeep for at least three separate properties where she presently resides, plus a lakefront property."
He claims to have filed for Chapter 11 reorganization out of his "complete frustration with his inability to resolve his divorce," and that he "was under the mistaken impression that filing for reorganization would somehow assist him in resolving and moving forward his various divorce-related issues. In fact, the opposite is true."
Those are fitting words. It's the hitch in the image Michael Glyn Brown has devoted his life to cultivating: The opposite is true.