The Daily Inter Lake

Dick Dasen Sr., the former Kalispell businessman convicted of sex crimes, has been put into involuntary bankruptcy, entitling his former companies and criminal defense lawyer to pursue his assets.

The Chapter 7 bankruptcy order was issued Jan. 4 by the U.S. Bankruptcy Court, Montana district.

The petition for a total of just more than $4 million was filed last year by the Dasen Co., Budget Finance and Kalispell attorney George B. Best. Dasen did not respond to the petition by a Dec. 14 deadline, so the order was granted by Bankruptcy Judge Ralph B. Kirscher.

The Dasen Co., through petitioner Dennis Green, accounts for most of the claim, seeking $3.9 million. Petitioning on behalf of Budget Finance, Green is seeking $57,505. Best is seeking $18,157.

Kalispell bankruptcy attorney Jim Cossitt explained that involuntary bankruptcies can set the stage for creditors to pursue assets, including those that have been transferred, and it can afford protection to the debtor from some or all of their debts.

Cossitt said the petitioners in an involuntary bankruptcy can pursue relief under the Montana Uniform Fraudulent Transfer Act, which can allow them to pursue assets that were transfered with the intent to hinder, delay or defraud creditors.

The petitioners in the bankruptcy action are following a different course from Bozeman attorney Monte Beck, who represents a girl who sued Dasen, claiming he sexually assaulted her when she was 16. A federal jury awarded her $2.2 million in damages in December 2005.

Shortly afterward, the girl filed a fraud suit, accusing Dasen and others of concealing assets to avoid payment.

Flathead District Court Judge Kitty Curtis issued an order in March 2006 that prevents Dasen's wife, Susan, from selling assets that he had transferred to her.

Court documents filed by Beck claimed that as of December 2003, Dasen was worth almost $6 million. He was arrested in February 2004. Through April 2005, Beck claimed that Dasen liquidated almost $9 million in assets, mostly by transferring them to his wife and other family members.

That fraud case is ongoing.

Dasen is serving a two-year sentence, with 18 years suspended, at the Montana State Prison for sexual abuse of children, promotion of prostitution and four counts of prostitution.

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com