Embezzlement Suspect's Payback Could be as Much as $500 Million - KCBD NewsChannel 11 Lubbock

11/22/05

Embezzlement Suspect's Payback Could be as Much as $500 Million

NewsChannel 11 has learned that although Jody Nelson is being accused of embezzling $70-million, the total he might have to pay back is closer to $500-million. A federal judge in the case has appointed attorney Robert Wilson to take care of collecting and distributing assets to the share holders. NewsChannel 11's Jennifer Vogel has been researching the case and learned exactly what will happen to those assets, including Nelson's businesses.

"The investors of course and the creditors would want to bring lawsuits against the alleged perpetrator, so instead of them bringing literally hundreds of lawsuits, a receivership was formed by the S.E.C. (Securities and Exchange Commission). Robert Wilson is known in the Nelson case as the receiver. The receiver is appointed by a federal judge and compiles and controls all assets until they can be sold and distributed to the people entitled. In Nelson's case, he allegedly owes the most to drilling company Patterson UTI. Wilson says he also owes banks, credit card companies, oil companies and business share holders. "We have one preceding at which time we try to sort out all the claims of everybody sort out what all is various companies own, marshal the assets and then have some orderly distributing scheme."

Some of the assets that have already been collected and itemized are the following; first, multiple businesses are in the court's hands like Chisum Travel Center. Nelson owned properties in Possum Kingdom as well as a gas station. He also has a house in Lake Travis, properties in Ruidoso, a Lubbock house in the Rush neighborhood, a King Air- private plane that costs approximately two and a half million dollars and luxury items like water crafts, airplanes, helicopters, SUV's, motorcycles, and $300,000 worth of guns.

But the question 140 employees at Chisum Travel Center want answered is 'What will happen to their jobs now that the court has taken over?' Wilson says, "It's business as usual. The current bills are being paid and current personnel is being operated, there might be some shifts in personnel, but that will be orderly also."

Wilson says all assets have to be sold, including Chisum, but that process will be begin in about six months.

The receiving process takes about a year and Wilson told NewsChannel 11 that Nelson has agreed to work with the courts.

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