Beakley tells Lubbock judge why he should not be held in contempt
John W. Beakley (KCBD File Photo)
LUBBOCK, TX (KCBD) -
Businessman John W. Beakley tells a Lubbock judge that he should not be held in contempt of court because he now enjoys special protection in bankruptcy proceedings.
Beakley runs Roundtable Corp., which in turn owns Dairy Queen locations all over Texas, including Idalou, and Wolfforth. Beakley is not associated with the DQ locations in Lubbock.
On March 1, investors came forward to accused Beakley of investment fraud. U.S. District Judge Sam Cummings in Lubbock ordered Beakley's assets to be frozen. But just hours before Cumming's order, Beakley's various companies filed for bankruptcy. So, for the most part, Cumming's order could not be enforced.
Nevertheless, Cummings still ordered a Receivership Trustee, Fernando Bustos, to make an accounting of Beakley's companies. In mid-March the Receiver filed a request to have Beakley held in contempt of court for interfering. Then, on March 26, Beakley filed for personal bankruptcy.
Beakley claimed Friday in court records that this latest move in bankruptcy court protects him from contempt allegations. According to court records, Beakley "… has been severed from the above lawsuit due to the automatic bankruptcy stay now in place. … Therefore the Court should deny [Bustos'] Motion for Contempt."
Beakley, along with his various companies, were each listed as defendants on March 1. Cumming's order specifically forbids each defendant from filing for bankruptcy. The business bankruptcy was filed before Cumming's order. Not so with Beakley's personal bankruptcy.
KCBD NewsChannel 11 reached out to Bustos to ask if Beakley's personal bankruptcy is a violation of the court order. Bustos has not called back.