Judge asks if feds plan ‘other form of action’ in bankruptcy probe of former Milford strip club owner

BRIDGEPORT — A judge has given federal lawyers more time to review the finances of a former Milford strip club president who filed for bankruptcy after losing a $113,560 judgment to exotic dancers who worked there.

US Bankruptcy Judge Julie Manning ordered the case of Fairfield resident Joseph Regensburger, the former president of Keepers Gentlemens Club, continued after the dancers’ lawyer revealed Regensburger received a $26,094 check from a Derby-based limited liability company that wasn’t reported in his bankruptcy filings.

During a hearing last month in federal bankruptcy court, the lawyer, Kenneth Krayeske, said the check is just a fraction of “upwards of $400,000 that Mr. Regensburger has had pass through his hands” within the “claw-back” period afforded to authorities in bankruptcy cases to research a debtor’s assets.

Prior to ruling, the judge asked a Department of Justice lawyer representing the United States Trustee, which oversees bankruptcy cases, whether federal lawyers are contemplating “any other form of action” in the case.

“I can’t comment further other than to say that the US Trustee is processing the documentation that it’s receiving from Attorney Krayeske,” the lawyer, Holley Claiborn, replied. “Where that leads is yet to be determined.”

“Understood,” Manning said. “I’m just wondering if people are considering any other form of action other than actions before the bankruptcy court. In any event, you’ll all think about that and we’ll go from there.”

Neama Rahmani, a former assistant US Attorney and the president of Los Angeles-based West Coast Trial Lawyers, said Friday that the bankruptcy trustee has “broad authority to investigate and prosecute bankruptcy fraud, if that is what is happening in the Regensburger case.

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