New Details from Kirk Wright's Secret House Deal
According to documents filed in Kirk Wright's bankruptcy, Kirk Wright purchased a large $2 million dollar home in Los Angeles with money transferred directly from the accounts of IMA. The trustee alleges that Wright wrongfully converted the investors money and the estate has a constructive trust over the funds.
The remedy of a constructive trust is very valuable, if you can trace the proceeds. To see why this is true, consider what the trustee is also alleging. The purchase of the house was done with funds from IMA, but there was a lawsuit between Kirk Wright and the sellers. The result of the lawsuit was that sellers and builders paid Kirk Wright approximately $160,000. Wright gave that money to his wife Kilssis Delos Wright, who then purchased jewelry, a new car and paid her lawyers who apparently obtained the settlement.
Now how much money, do you think, that the trustee can recover from Kilssis Wright? The jewels? The car? Money paid to third parties for legitimate services?
The trustee is going after it all. Since IMA has a constructive trust on the funds wrongfully converted by Kirk Wright and can trace the proceeds of those funds to Kilsiss's jewelry and car, and the law firm, it can legally claim that these monies or goods were never Kirk Wright's to give to his wife: it was always IMA's money and they had no intention of gifting it to Kilssis. But, it would appear to be a bit of hard luck for the law firm if they have to give up their professional fees for handling a lawsuit which actually increased the value of the bankrupt estate.
