The man ordered to confiscate a Lubbock-based business enterprise and the lawyers in a related bankruptcy case have settled their disagreement.
Earlier this month, the U.S. District Court Judge in Lubbock, Sam Cummings, appointed Fernando Bustos as a court-appointed Receivership Trustee to take possession of the various businesses controlled by John W. Beakley of Lubbock.
The reason there is a Receiver is because Beakley is accused of investor fraud in a civil proceeding; there are no criminal charges and Beakley has not yet responded to the allegations.
Bustos was ordered to confiscate Beakley's Roundtable Corporation assets. Roundtable includes I-27 Power Sports, I-27 Marine, and no less than 71 Dairy Queen locations all over Texas and New Mexico. Court records indicate neither Bustos nor Cummings knew that just hours before hand, Roundtable had filed for Chapter 11 Bankruptcy in East Texas.
Bankruptcy comes with automatic protections; so, Bustos was accused of violating bankruptcy rules. But it could have gone the other way just as easily. Cumming's order, had it been signed a few hours earlier, would have forbid Beakley from filing bankruptcy.
Lawyers for Beakley asked Chief United States Bankruptcy Judge Brenda T. Rhoades to punish Bustos and others. Bustos responded in court records that he had no knowledge of the bankruptcy and that he was simply following orders from the federal judge in Lubbock.
Now, court records say both sides have reached an agreement, "which resolves the dispute concerning the validity of the filing of these bankruptcy cases."
In short, the case remains in bankruptcy court, but the Receiver will also stay on the case. The agreement says Beakley and his companies "have agreed to produce to the Receiver all of their corporate minute books and organizational documents, bank statements, profit & loss statements, balance sheets, tax returns, and payroll tax reports…"
The agreement, signed on Friday, also says that "any requests to modify, terminate, or enforce this order shall be presented exclusively to this court… " meaning Judge Rhoades, not Judge Cummings.
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