Judge denies broker's bankruptcy

BOISE (AP) - A federal bankruptcy judge has ruled a former commercial property broker still owes $125,000 in rent he collected as property manager of an Idaho strip mall, but failed to forward to the owners.

U.S. Bankruptcy Judge Terry L. Myers ruled Friday that Jerry Gunstream's debt to Airport Partners won't be eliminated by his Chapter 7 bankruptcy, although Myers previously discharged Gunstream's debts.

The Idaho Statesman reports that Judge Myers agreed with the mall owners that Gunstream acted willfully and maliciously when he repeatedly diverted rent money from Holly Plaza in Nampa.

Gunstream has characterized his actions as "unauthorized borrowing" that he intended to repay, but Myers said it was clearly embezzlement.

Gunstream filed for Chapter 7 bankruptcy in November 2010, claiming debts of $2.1 million and assets of just over $3,000.