A judge in Lubbock shut down one of the biggest Dairy Queen franchisees in the nation. However, that shut-down didn't last long. On Thursday U.S. District Judge Sam Cummings signed an order to confiscate the property of Roundtable Corporation.
The company owns I-27 Power Sports, I-27 Marine, the Dairy Queen locations in Wolfforth and Idalou and many other businesses in Texas and New Mexico. Roundtable and its related companies own 71 Dairy Queen locations.
Cummings seized those businesses amid allegations of fraud by the man who runs Roundtable, John William Beakley.
Beakley has not yet responded to allegations of investor fraud.
However, he was able to file for bankruptcy in East Texas a mere matter of hours before the judge in Lubbock took action. So, Cummings had no choice. He had to let go of those properties and let a bankruptcy judge take control of the case.
The allegations of investor fraud have been repeated in the bankruptcy case but those are not resolved.
The court documents in Lubbock had been sealed up until Monday.