James Eugene Wells, a 73-year-old resident of Marmet, West Virginia, has pleaded guilty to withholding records related to the financial affairs of a debtor in bankruptcy. This plea was entered in Charleston federal court. The case stems from actions following an October 2022 Chapter 11 bankruptcy filing by a business solely owned by Wells' wife.
Court documents reveal that Wells, though not an employee, managed several financial aspects of the business. Between February 2023 and February 2024, he secured five loans in the business's name post-bankruptcy filing but failed to disclose these loans to the United States Trustee overseeing the case.
On January 31, 2024, during a U.S. Bankruptcy Court hearing regarding a motion to dismiss the bankruptcy case, it was revealed that only one of the four loans obtained by that time had been disclosed. Wells admitted under oath that he did not inform the court or trustee about three additional loans and also failed to disclose a fifth loan acquired on February 8, 2024. Subsequently, on February 21, 2024, the court dismissed the bankruptcy case.
The loans amounted to $68,000 and were used for business operations with lenders charging $9,700 in fees. Wells is facing sentencing on May 5, 2025. He could receive up to five years in prison and be subject to three years of supervised release along with a $250,000 fine.
United States Attorney Will Thompson acknowledged the FBI's role in investigating this matter. The criminal referral originated from the United States Trustee’s Charleston field office. The United States Trustee Program operates under the Department of Justice aiming to uphold integrity within the bankruptcy system.
The proceedings took place under United States District Judge Joseph R. Goodwin with Assistant United States Attorney Jonathan T. Storage handling prosecution duties.
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