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DALLAS-Real estate partnerships managed and operated by BNC Real Estate filed a petition on July 7 forcing Henry S. Miller Commercial LLC into involuntary bankruptcy. The recent filing is a follow-up to a $12 million judgment against locally based Henry S. Miller Commercial, which was rendered last fall.

The more recent Chapter 7 involuntary petition was filed in U.S. Bankruptcy Court, Northern District of Texas by local attorney Howard Spector. Spector filed on behalf of BNC Partnerships BNC Lake Jackson Village LP, Dallas Clubview Gardens LP and Woodside Apartments LP. The case number is 09-34422-7.

The petition is linked to an October 2008 judgment of fraud against Henry S. Miller Commercial and its former agent, Steven Defterios. That case, Dallas Bayou Bend Ltd. et al v. Henry S. Miller Commercial Co. was heard in Dallas County District Court 14, and revolved around Defterios’ representation of Connecticut resident James Flaven.

Flaven, a trucker with no money, represented himself as a wealthy investor with funds to acquire various properties from the BNC partnerships. When it was revealed that Flaven had no funds, the deals fell through, while Flaven disappeared. The BNC partnerships filed suit against Defterios and Henry S. Miller Commercial, alleging fraud and negligence.

Dallas attorney Marc Stanley of Stanley, Mandel & Iola, who is representing the investors in the involuntary bankruptcy filing, tells GlobeSt.com the involuntary bankruptcy petition was filed due to concerns that Henry S. Miller Commercial didn’t have money to pay the judgment. “They represented to the court, and to others, that they didn’t have sufficient resources or insurance to pay the judgment,” adds Stanley, who also represented the BNC partnerships with colleague Roger Mandel in the fraud case last fall.

Sam Kartalis, president and COO of Henry S. Miller Commercial said in a prepared statement dated July 7 that an appeal to the original lawsuit was filed shortly after the case was tried. “We are awaiting a decision from the Court of Appeals and look forward to a favorable outcome,” Kartalis’ statement reads. Representatives from Henry S. Miller Commercial declined requests for an interview due to the sensitivity of the situation.

Stanley, however, is skeptical. “They’re appealing it, but didn’t supersede the judgment with a bond,” he says. “I’m convinced they’re insolvent.”

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