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Former Courtesy Patrol Operator Pleads Guilty to Bankruptcy Fraud

Submitted by jhartgen@abi.org on

Robert Martin of Beckley, W.Va., pleaded guilty yesterday to fraudulent receipt of property from a debtor, according to a DOJ press release. Martin admitted to paying himself without authorization while serving as the chief executive officer of the entity that operated the West Virginia Courtesy Patrol. According to court documents and statements made in court, Martin was CEO of Citizens Conservation Corp (CCC), which he formed in 1993 and which dissolved in or about 2019. CCC’s primary source of income from in or around 1998 until in or around the summer of 2018 was a multimillion-dollar contract with the State of West Virginia to operate the Courtesy Patrol roadside assistance service. On April 3, 2019, CCC filed for bankruptcy after the loss of the state contract in 2018 left it financially unstable. During a May 2, 2019, bankruptcy creditors meeting, Martin testified that CCC was not generating income, that he was not receiving a salary because of the lack of income, and that he expected CCC to be paid on some receivables owed to it. The United States Trustee, who oversees the administration of bankruptcy cases in the Southern District of West Virginia, told Martin that he was not allowed to take a salary as a controlling officer without U.S. Bankruptcy Court approval.