SHREVEPORT, La. – (KTAL/KMSS) – A criminal indictment has been returned against a 39-year-old Shreveport businessman for failing to turn over property assets required by a federal bankruptcy judge at 2017 hearing, according to Alexander VanHook, acting U.S. Attorney for the Western District of Louisiana.
Michael Ray Carr, Jr. has been charged with concealment of bankruptcy estate assets.
According to the indictment, Carr was the sole and principal owner of PADCO Energy Services, LLC (“Energy”), and 60% owner PADCO Pressure Control, LLC (“Pressure”), with both businesses consisting of mainly oilfield services.
On Oct. 4, 2016, Energy and Pressure filed for Chapter 11 bankruptcy. The bankruptcy documents were signed by Carr and certified under penalty of perjury that the information contained in them was true and correct.
The indictment alleges that a bankruptcy court hearing was held on Sept. 12, 2017, wherein Pressure and Carr agreed to turn over property of the estate, oilfield equipment, to the bankruptcy trustee.
But Oct. 5, 2017, the Chapter 11 trustee for Pressure filed a motion in the bankruptcy proceeding claiming that Pressure and Carr had failed to turn over the property like he said he would.
Two months later, an agreement between Pressure, Energy, Carr, and the creditors was reached and a consent order was approved by the bankruptcy court stating that the Chapter 11 trustee could secure all equipment referenced in the order.
The indictment alleges Carr hid the property on purpose – that he “knowingly and fraudulently” concealed property for Pressure and Energy (which the indictment states, belonged to the bankruptcy estate) from the Chapter 11 trustee charged with control of the debtor’s property, along with creditors and, even worse, the U.S. Trustee.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The FBI is conducting the investigation and Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.