Press allegations about Dr Klein not paying rent... says Judge asked to lift 'stay' on eviction

[myosotis]

By Jen Heger
Radar Assistant Managing Editor

Michael Jackson's long-time dermatologist and friend, Dr. Arnold Klein, is being accused of not paying rent for his $60k a month swanky Beverly Hills mansion and using his bankruptcy proceedings to "maintain a lavish personal lifestyle at the expense of his creditors," according to court documents obtained exclusively by RadarOnline.com.

As we previously reported the bankrupt former “doctor to the stars” auctioned off memorabilia from celebrities that had made him famous to pay off his creditors. All three of Klein's multi-million dollar homes are also being sold off. He has a total of $12 million in debts, according to his federal bankruptcy filing.

EXCLUSIVE DOCUMENTS: Dr. Arnold Klein Accused Of Stiffing His Landlord

The company that owns the Beverly Hills estate Klein is currently living in, YLH 26 Holdings, is asking a judge to lift a stay that prevents Dr. Klein from being evicted because he is in bankruptcy proceedings. Klein signed the lease on January 24, 2011, for a two month term at $60k a month, and after that it went from month-to-month. According to court documents, Klein allegedly stopped paying on April 1, 2012, and the landlord is responsible for paying the utilities.

The landlord began eviction proceedings, but according to the documents, "On or about May 1, 2012, YLH received a letter from Peter M. Lively who identified himself as Klein's bankruptcy counsel...The letter states that Klein is in Chapter 11 bankruptcy, which was filed on January 20, 2011, four days prior to entering into the Lease. This was the first time YLH was given notice of Klein's bankruptcy. The letter asserts that the automatic stay applies to prevent YLH from taking action to remove Klein from the property."

The company claims that the last rental check they received from Klein was only partial payment
covering April 1-15, 2012, and he allegedly hasn't made any payments since then.

Further causing distress to the homeowner - Klein's utility bill averages a whopping $6,832.11 a month, which Klein doesn't have to pay!

"YLR has a legitimate concern that Klein might cause significant harm to the Property, and the ability to recover from the estate for any such damage is questionable," the documents assert. "The property is a large, luxurious residence which contains many valuable artifacts and features. The Property was rented furnished and contains over $1 million in furniture and artwork, some of which is irreplaceable. Klein's frequent overheating of the large pool on the Property to levels beyond the manufacturer's recommendations indicates his disregard for the preservation of the Property's assets."

YLH further claims in their court filing, "Chapter 11 bankruptcy debtor, Arnold Klein, has taken advantage of the protection of the automatic stay in order to maintain a lavish personal lifestyle at the expense of his creditors. Klein's gross mismanagement of his bankruptcy estate led the Court to appoint a Chapter 11 Trustee to oversee the estate. Nevertheless, Klein continues to misuse the bankruptcy process in an effort to remain in possession of a $60,000/month Beverly Park home without paying rent. Movant seeks relief from stay in order to pursue its state court remedies to obtain possession of the property."

The matter is under submission to the judge.

http://www.radaronline.com/exclusiv...-bankrupt-doctor-arnold-klein-not-paying-rent

 

[Petrarose]

Didn't Klein say that he was ill-advised to file bankruptcy, suggesting that it was not necessary. I see now that this is far from the truth. Why 3 houses though? I hope those who are tempted to spill all the information about their famous clients on TV take a good look at Klein's case and learn from his downfall. I hope he finds a smaller and cheaper place to live and get back into practice.

 

[xthunderx2]

I dont know why they have to use Michael's name in this article...Klein is the one not paying his rent...it has nothing to do with Michael...its a media trick to get peoples attention. they try and make it seem like Michael was Kliens only patient...like he went bacnkrupt after Michael died....imo...I think Klein had financial problems before June 25th,

 

[HIStory]

^^ That's true. He had a lot of celebrity clients, yet they always only mention Michael.

 

[jaydom7]

Klein was overcharging MJ for unnecessary treatments. I don't trust him at all, and I do believe he was giving MJ more meds than were necessary. He definitely wasn't helping MJ with his medical problems that's for sure.

 

[Petrarose]

I dont know why they have to use Michael's name in this article...Klein is the one not paying his rent...it has nothing to do with Michael...its a media trick to get peoples attention. they try and make it seem like Michael was Kliens only patient...like he went bacnkrupt after Michael died....imo...I think Klein had financial problems before June 25th,

Yes he had a lot of stars, but he became out of control with his spending, sex, and coherency. After Michael's death he talked openly about Michael's medial business which caused many stars including Taylor to shy away from him. Once they abandoned him, his practice began falling apart even more. Of course everyone who knew or talked to Michael would always be referred to in the press as Michael Jackson's XYZ. Michael continues to make money for many.

Jaydom I agree that Klien was overcharging Michael. I notice all traders and service providers overcharge stars including stars like Beyonce. Star's doctors and dentists rob them too. The prices they charge to do their hair, cook their food, make appts, make a wig, etc. is out of this world, so Klien is not the only theif in hollywood.

 

[Bonnie Blue]

Of course everyone who knew or talked to Michael would always be referred to in the press as Michael Jackson's XYZ. Michael continues to make money for many.

Actually i think the media just chooses the sleaziest and most disreputable characters when they refer to them as mj's xyz. Like klien, fiddes, raffles who mj met i think once. It's tarnishing mj by association.

 

[Petrarose]

Actually i think the media just chooses the sleaziest and most disreputable characters when they refer to them as mj's xyz. Like klien, fiddes, raffles who mj met i think once. It's tarnishing mj by association.

I agree. If you are a thief and you say you know Michael, you become very famous. Let's hope Klein finds a way out of his difficulties, but he needs money so be prepared for trash about Michael to surface. I think he sold all the objects he took from Michael already.

 

[Ashtanga]