Oklahoma Woman
Sentenced
on Fraud Convictions
Lola Faye Denton of
Elk City, Okla. was sentenced to 55
months
in federal prison and ordered to pay
restitution
of over $900,000 to her victims,
according
to a Department of Justice
release.
style='mso-spacerun: yes'> She was convicted on charges of bank
fraud,
bankruptcy fraud, mail fraud, and
conspiracy
to commit perjury.
style='mso-spacerun: yes'> Evidence showed that Denton had
obtained loans
from the Washita State Bank in Burns
Flat,
Okla., in connection with a wildlife
park
known as “Bear Creek.”
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She made various false
statements to
the bank, including claims that she
was owed
money by a person who was shown to
be fictitious.
style='mso-spacerun: yes'> She and other unindicted
co-conspirators also
engaged in several instances of
giving false
testimony under oath to the U.S.
Bankruptcy
Court in connection with Denton’s
bankruptcy
and Bear Creek’s bankruptcy, as well
as other
civil proceedings.
Bankruptcy Fraud Brings
Federal Prison Sentence For
Florida Man
Robert Wayne Hughes of Gulf
Breeze, Fla.
was sentenced Wednesday on charges
of concealment
of assets from the U.S. Bankruptcy
Trustee
and wire fraud, according to a
Department
of Justice release.
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Hughes was sentenced to 17
months
in federal prison and was given
three years
supervised release.
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He was also ordered to pay
restitution
of $42,930
to the U.S Bankruptcy Court and
$154,500
to John Morris, the victim of the
wire fraud
scheme.
The FBI determined that two
days
prior to filing chapter 7, Hughes
had withdrawn
monies from two credit union
accounts so
that both accounts would have a
zero balance.
style='mso-spacerun: yes'> He represented in bankruptcy
proceeding that
in the 90 days prior to filing he
had not
paid any creditors for loans,
installments
and purchases of goods, when he
actually
had made thousands of dollars in
such payments.
Hughes also withheld
information
about two separate bank accounts
in which
he held assets, failed to report
his ownership
in two companies, failed to
disclose 435
stock options, and two other
vehicles.
Microbest Inc.
Reaches
Agreement Facilitating Chapter 11
Exit
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Microbest Inc. (MBST)
announced
yesterday that it reached an
agreement with
two former insiders to satisfy a
judgment,
resolving a hostile attempt they
made to
acquire the company in June,
according to
a newswire report.
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On June 1, the Boca Raton,
Fla. company
filed chapter 11 to protect itself
from
the actions taken by the former
insiders.
Prior to the bankruptcy
filing, the
company had received $2,500,000 in
financing
commitments from Bruderman
Brothers Inc.,
a Wall Street Investment Banking
firm. This
financing, put on hold due to the
filing,
will be executed by the company as
soon
as the financial planning
documents can
be completed.
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yes'>
style='color:black'>Living.com
Files for Chapter 11
Living.com ended a two-week wait
on its
fate by entering into chapter 11
bankruptcy
protection Tuesday, according to a
newswire
report.
style='mso-spacerun: yes'> The Austin, Texas-based e-tailer
filed for
chapter 11 at the U.S. Bankruptcy
Court
in the Western District of
Texas.
style='mso-spacerun: yes'> The company also entered a separate
chapter
11 bankruptcy protection on behalf
of subsidiary
Shaw Furniture Galleries.
style='mso-bidi-font-size:10.0pt'>Living.com,
citing an inability to attract new
revenue
sources, discontinued operations
for both
businesses Aug. 15 after spending
at least
$41.5 million in venture
capital.
style='mso-spacerun: yes'> The company listed its assets at
between $1,000,001
and $10 million and its debts at
between
$10,000,001 and $50 million.
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It also confirmed that it
has more
than 1,000 creditors. Among the
main Shaw
Furniture creditors holding
unsecured claims
are Lexington Furniture;
Millennium Logistics
of Thomasville; and Thomasville
Furniture.
The largest is Bekins Worldwide
Solution
of Chicago.
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The largest unsecured
creditor was
America Online.
Safety
Components International
to Emerge From Bankruptcy
Safety
Components International Inc. and
some of
its U.S. subsidiaries, including
Safety
Components Fabric Technologies
Inc. and
Automotive Safety Components
International,
Inc., announced yesterday that
their plan
of reorganization to emerge from
their chapter
11 cases was approved by the
District Court
of the State of Delaware,
according to a
newswire report.
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Immediately upon emergence,
which
is expected in early October, the
company
will have access to approximately
$56 million
in debt financing.
style='mso-spacerun: yes'> The Greenville, S.C.-based Safety
Components
is a low cost supplier of
automotive airbag
fabric and cushions.
