Former landlord Miell loses bid to have trustee removed from bankruptcy

A bankruptcy judge has denied Cedar Rapids landlord Robert Miell's motion to remove the trustee overseeing the liquidation of his rental property empire.

Miell had alleged corruption, obstruction, conspiracies and cover-ups in his bankruptcy case and in the United States Attorney's Office, which oversaw his successful prosecution last year for insurance fraud, according to a ruling by U.S. Bankruptcy Judge Paul Kilburg.

Miell's wrath against bankruptcy case Trustee Renee Hanrahan was over her management of his 500-plus rental properties. She was assigned by Kilburg to take over Miell's Elite Properties of Iowa in June 2009.

Hanrahan dismissed Miell's staff after taking over the company and hired outside property managers to assist in operating the properties, many of which had maintenance issues. She said Miell had left virtually no records to assist in running the business.

Miell, 56, argued that Hanrahan should have hired a manager he recommended. He said Hanrahan had conflicts of interest arising from relationships with creditors, tenants, property management companies, attorneys and the bankruptcy court. He said her decisions added layers of cost to operation of the business that left it unprofitable.

Miell had filed bankruptcy under Chapter 11 of the federal bankruptcy code, seeking to reorganize his debts and continue in business.

Bank lenders and the U.S. Bankruptcy Trustee's Office petitioned Kilburg to convert the case into a Chapter 7 case in which its assets are being sold off to satisfy creditors. They cited rising administrative expenses, unpaid real estate taxes and issues such as property insurance on some properties that had not been kept up to date.  Kilburg agreed, and Hanrahan began liquidating the properties in October 2009.

Kilburg ruled Monday that Miell had failed to set forth admissable evidence to prove that cause exists to remove the trustee. He said Hanrahan had answered his charges in a sworn affidavit, describing two case she handled for Miell's tenants more than 10 years before the bankrutpcy filing, a two-minute conversation with Miell in which she had declined to meet with or handle a case for him, and “minimal” contacts with one of Miell's creditors.

Although Miell had filed a ”stack” of exhibits regarding the motion to remove the trustee,  Kilburg wrote in his opinion that such documents are generally inadmissable as hearsay.

Miell, who has been incarcerated in Iowa County Jail in Marengo awaiting transfer to a federal facility, wrote most of his objections by hand, shunning the use of an attorney.