Dr. Jack Holladay Accused of Perjury and Bankruptcy Fraud by Court Trustee
Brent Hanson - USAEYES-FRAUD.com
http://www.usaeyes-fraud.com/lawsuits/dr.-jack-holladay-accused-of-perjury-and-bankruptcy-fraud.html
IN THE UNITED STATES BANKRUPTCY COURT FOR THE
SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
In Re:
JACK T. HOLLADAY,
Debtor.
____________________________________
WILLIAM WEST, CHAPTER 7 TRUSTEE
AND HEA CLINIC, P.A.,
Plaintiffs,
vs.
JACK T. HOLLADAY,
Defendants.
CASE NO. 03-34333-H4-7
(Chapter 7)
ADVERSARY NO. 03-3781
HEA CLINIC, P.A.'S FIRST AMENDED
COMPLAINT SEEKING DENIAL OF DISCHARGE
TO THE HONORABLE WILLIAM GREENDYKE,
UNITED STATES BANKRUPTCY JUDGE:
COME NOW, HEA Clinic, P.A. (?HEA?) and files this First Amended
Complaint Seeking Denial of Discharge of Debtor Jack Holladay ("Debtor")
and in support thereof would show as follows:
I.
PARTIES
1. Debtor is an individual debtor who initiated this
proceeding by filing a voluntary Chapter 7 petition on March 25, 2003.
2. William West is the duly appointed, acting Chapter 7
Trustee in this case.
3. HEA is a professional association with its principal
place of business in Houston, Harris County, Texas.
4. HEA, a creditor and party in interest in this proceeding,
is Debtor?s sole unsecured creditor. Debtor owes HEA approximately
$750,000 pursuant to a judgment entered against Debtor in favor of HEA
on March 12, 2003.
II.
JURISDICTION AND VENUE
5. This Court has jurisdiction over this matter pursuant to
11 U.S.C. �1334 and 28 U.S.C. � 157(b)(2)(B). This matter is a core
proceeding under 28 U.S.C. � 157(b)(2)(I) and (J). Venue is proper
under 28 U.S.C. � 1409(a).
6. This matter is properly brought as an adversary
proceeding under Fed. R. Bankr. P. 7001(4) and (6).
III.
FACTS
7. Debtor is a renowned eye surgeon. Based upon records
produced by Debtor, his annual income is in the range of $600,000. Prior
to filing for bankruptcy, only a fraction of this income was
attributable to salary, and the rest was derived from distributions from
corporations formed and owned, in whole or in part, by the Debtor. Upon
filing bankruptcy, Debtor, changed the characterization of his income
and is now claiming that the vast majority of his income is salary or
wages for personal services. Debtor valued his interests in these
profitable corporations in his Schedules at $100.00 and $1,000.00.
8. Debtor owns two homes; one in Bellaire, Texas (the
"Bellaire Home"), and one in Lake Nona, Florida (?the Florida Estate?).
The Bellaire Home and the Florida Estate are valued by Debtor at
$1,000,000 and $800,000, respectively. Debtor submitted in his
Schedules, under penalty of perjury, that these two extravagant homes
contain personal property worth only $8,835.00.
9. HEA and the Chapter 7 Trustee objected to Debtor?s
exemptions. After an evidentiary hearing, the Court ruled on February
27, 2004 that Debtor's personal property had a value more than 700%
higher than that set forth in Debtor's sworn Schedules.
10. HEA took a 2004 examination of Mrs. Sharon Holladay, the
Debtor's wife, on June 23, 2003. Mrs. Holladay testified that Debtor
owned a number of assets that were not listed on his original Schedules.
11. Debtor attempted to hide assets by failing to list a
number of personal property items he owns, including, but not limited
to, a golf cart, sports equipment, a new grill, a laptop computer,
cameras and camcorders and other personal property. Mrs. Holladay
testified that an interior decorator assisted her in purchasing all new
furnishings for the Florida home, and that Debtor spent $2,000 (the same
value placed on all the Florida furnishings) to move some of the
furnishings to Florida. Debtor listed only 109 items of personal
property in his original Schedules. The Trustee's appraiser identified
and appraised at least 260 items when she went through Debtor's two
homes. Debtor did not file his Amended Schedule listing much of the
omitted property in his Florida Home until after his wife testified
about the omitted assets in her Rule 2004 deposition.
12. Debtor intentionally undervalued property on his
Schedules. By way of example only, Mrs. Holladay testified that their
Bellaire home contains a Steinway grand piano that was purchased several
years ago for around $25,000 (which Debtor valued at $2,500), that just
one piece of the Debtor's exercise equipment cost $3,674 in September
2002 (which Debtor valued at $200) and that pictures that the Debtor
valued at $25 on his Schedules include original works of art by a local
artist and pictures purchased from an interior designer.
13. Debtor has also attempted to conceal the value of
intellectual property he owns, including the Holladay Trademarks, which
he valued at only $1.00 in his Schedules. Debtor spent a significant
amount of money to register the Holladay Trademarks prior to filing
bankruptcy, then listed their value at only $1.00, and unsuccessfully
attempted to exempt the Trademarks from his bankruptcy estate. Debtor
has also failed to disclose royalties and has mischaracterized licensing
agreements as consulting agreements.
14. Debtor has made transfers in contravention of paragraph
7 and/or 10 of his Statement of Financial Affairs. In the year before
filing bankruptcy, Debtor transferred tens of thousands of dollars to a
trust established for his children. Debtor also contributed to a down
payment on a $300,000 condominium for his son, as well as furnishings,
inspections and other items related to his son's condominium shortly
before filing bankruptcy.
15. The Debtor listed only $2,500.00 in furs and jewelry in
his Schedules, but spent that amount on a single piece of jewelry in the
Fall of 2001.
16. Debtor attributes minimal values to companies in which
he holds a significant interest and which have generated substantial
income and yielded substantial distributions, and which have potential
for significant future income and distributions. No receivables are
listed for any of these companies and no distributions or other profits
from these companies have been turned over to the Debtor's estate.
Debtor intentionally undervalued his interest in these companies to give
the impression that Debtor is merely a stockholder in worthless
corporations and has failed to disclose or turn over to the Trustee
distributions from any of the Companies in which the Debtor has an interest.
17. In the months prior to his bankruptcy filing, Debtor
dissipated non-exempt assets to pay for luxury items, as well as lavish
personal living expenses, in order to preclude HEA and the Trustee from
utilizing those funds to satisfy HEA's judgment.
18. Debtor has not maintained sufficient records to
adequately explain his business transactions or dissipation of
significant amounts of non-exempt liquid assets and cash, such that the
Trustee and his creditors may conduct a meaningful review of Debtor's
assets. Debtor testified at his 341 meeting that his wife was in charge
of tracking income and expenses for his household. Mrs. Holladay
testified at her 2004 exam that she obtained a number of certified
checks from Debtor's accounts because of their concern that HEA would
freeze these accounts in satisfaction of their judgment against Debtor.
Mrs. Holladay and the Debtor have been unable to give reasonable
explanations as to where significant amounts of cash withdrawn from
Debtor's various accounts within months of Debtor's bankruptcy filing
have gone.
IV.
GROUNDS FOR DENYING DISCHARGE
19. Debtor's pattern of nondisclosure shows that Debtor
acted with intent to hinder and/or defraud the Trustee and creditors.
Pursuant to 11 U.S.C. � 727(a)(2) Debtor should be denied a discharge
because Debtor has, with the intent to hinder, delay or defraud a
creditor or an officer of the estate charged with custody of property
under this title, transferred, removed, destroyed, mutilated or
concealed property of the Debtor within one year of the date of filing
bankruptcy as set forth above.
20. The Court should deny Debtor's discharge under 11 U.S.C.
� 727(a)(5) because the Debtor has failed to adequately explain the loss
of assets or deficiency of assets to meet his liabilities.
21. The Court should deny Debtor's discharge under 11 U.S.C.
� 727(a)(4)(A) because the Debtor knowingly and fraudulently, in or in
connection with the case made a false oath or account.
22. On April 29, 2003, Debtor knowingly and fraudulently
made false oaths when Debtor testified that his Schedules were true and
correct. It was only when Mrs. Holladay was deposed and admitted that
Debtor owns a number of significant assets he did not identify in his
original Schedules (which he signed under penalty of perjury), that
Debtor amended his Schedules.
23. Debtor knowingly and fraudulently made false oaths when
he signed and executed his original Schedules that excluded a number of
items of substantial value and otherwise contained incorrect
information. Debtor further made false oaths at the 341 Meeting of
Creditors when he testified that his Schedules were true and correct and
when he testified under oath that nothing at his Bellaire home was of
any value. He made a further false oath when he testified at the 341
Meeting of Creditors that he specifically recalled not executing any
financial statement to Bank of America, when in fact he did provide such
a financial statement, which statement was withheld from HEA for 5 months.
24. Based on the foregoing, Debtor knowingly and
fraudulently, in or in connection with the case made a false oath or
account. Such a false oath is sufficient to deny Debtor's discharge.
Accordingly, Debtor should be denied his discharge under 11 U.S.C. �
727(a)(4)(A).
PRAYER
WHEREAS, PREMISES CONSIDERED, HEA Clinic, P.A. respectfully
request that the Court deny Debtor's discharge for the reasons stated
herein and for such other and further relief to which it may be entitled.
Respectfully submitted,
LOCKE LIDDELL & SAPP LLP
By:____/s/ J. Michael Dorman _____
J. Michael Dorman
State Bar No. 6004300
Federal I.D. No. 2566
Patricia Williams Prewitt
State Bar No. 21566370
Federal I.D. No. 10440
Elizabeth Freeman
State Bar No. 24009222
Federal I.D. No. 24564
3400 JPMorgan Chase Tower
600 Travis Street
Houston, Texas 77002-3095
Telephone: (713) 226-1200
Telecopier: (713) 223-3717
ATTORNEYS FOR HEA CLINIC, P.A.
OF COUNSEL:
LOCKE LIDDELL & SAPP LLP
3400 JP Morgan Chase Tower
600 Travis Street
Houston, Texas 77002-3095
Telephone: (713) 226-1200
Facsimile: (713) 223-3717
CERTIFICATE OF SERVICE
I hereby certify that the foregoing pleading has been served in
accordance with Local Bankruptcy Rule 9013 on all parties listed below,
by either United States mail, first class postage prepaid, or by ECF
e-mail on this the 11th day of March, 2004.
Craig H. Cavalier
3555 Timmons Lane, Suite 1450
Houston, TX 77027
William G. West, Jr.
Chapter 7 Trustee
10601 Grant Rd., Suite 222
Houston, TX 77070-4476
US Trustee
515 Rusk, Rm. 3516
Houston, TX 77002
Mr. Michael S. Holmes
Cowgill & Holmes, PLLC
2211 Norfolk, Suite 1190
Houston, Texas 77098
__/s/ Elizabeth Freeman ______
Elizabeth Freeman
Glenn - USAEyes.org
Assurance (http://www.USAEyes.org). The use of usaeyes.US, and other
use of USAEyes by Brent Hanson is not approved by Council for
Refractive Surgery Quality Assurance. Arbitration under the authority
of the Internet Corporation of Assigned Names and Numbers (ICANN)
found Brent Hanson's use of the USAEyes trademark inappropriate and
ordered the domains usaeyes.INFO, usaeyes.BIZ, usaeyes.NET transferred
to the Council for Refractive Surgery Quality Assurance.
Glenn Hagele
Volunteer Executive Director
USAEyes (R)
Patient Advocacy Surgeon Certification
"Consider and Choose With Confidence" (TM)
Email to glenn dot hagele at usaeyes dot org
Lasik Bulletin Board
http://www.USAEyes.org/Ask-Lasik-Expert/
Mr. Hagele is not a doctor.
This transmission is on behalf of the Council for Refractive Surgery
Quality Assurance(TM) and is not endorsed, submitted, or
representative of any other organization or entity. Copyright Council
for Refractive Surgery Quality Assurance(TM). All rights reserved.
Scott
"Brent Hanson - USAEYES-FRAUD.com" <no_co...@anywhere.com>
wrote in message news:X2pJm.10647$s_4.203@newsfe02.