More allegations of fraud against DQ empire - KCBD NewsChannel 11 Lubbock

More allegations of fraud against DQ empire

Posted: Updated:
John W. Beakley (KCBD File Photo) John W. Beakley (KCBD File Photo)
LUBBOCK, TX (KCBD) -

On Tuesday, more investors came forward to accuse Lubbock-based businessman John W. Beakley of fraud in a civil proceeding.

Earlier this month, Timothy Douglass and other Douglass family members sued Beakley and Roundtable Corporation, which - along with related companies - owns at least 71 Dairy Queen locations in Texas and New Mexico. All Dairy Queen locations in the city of Lubbock are owned by Brady's Dairy Queen, Inc. and are not affiliated with Beakley's company.

Roundtable also owns I-27 Powersports, I-27 Marine & RV, Thermal Fluid Technologies, Ranchland Hills Golf Club, Ranchland Hills Country Club and other businesses.

Wayne Miller of Nueces County and Walter Miller of Vancouver, Washington do not say specifically how much money they invested with Beakley. Bethel Parsley of Levelland and other members of the Parsley family claim losses in excess of $1.75 million.

The Millers and Parsleys said Tuesday in court records that their claims will be similar to the Douglass family.

The Douglass family claims that Beakley managed a $10 million investment for them starting approximately 11 years ago. Records say Beakley convinced the Douglass family to unknowingly supply money to Beakley's companies, which were formed into complicated entities.

The lawsuit says portions of those companies were sold back to the Douglass family, but with Beakley claiming an equal share or even a majority share without Beakley putting up a meaningful contribution. In simple terms, the lawsuit says Beakley tricked them out of their money.

The lawsuit also says Beakley defrauded the U.S. government out $2.5 million or more by not submitting payroll taxes.

Beakley faces allegations in civil proceedings, not a criminal charge, and his attorneys have not yet responded to the allegations. Roundtable filed for bankruptcy on the same day that the Douglass lawsuit was filed.

Copyright 2012 KCBD. All rights reserved.

Powered by WorldNow

5600 Avenue A
Lubbock, TX. 79404

FCC Public File
publicfile@kcbd.com
806-744-1414
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and KCBD. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.