Haskell Knight and Emily Knight of Franklin, Tennessee, have pled guilty to federal fraud charges. The charges relate to Trey Knight's business venture, Udoxa, and their bankruptcy filings. The couple appeared before U.S. District Chief Judge Shelly D. Dick.
In 2016, Trey Knight sought investment capital for Udoxa, a company that purported to market nutritional supplements but did not make any sales. He solicited $50,000 loans from several victims under false pretenses and failed to start the business as promised. Misrepresentations included claims about a wealthy investor and available capital for the startup. The funds were instead used for personal expenses and old business debts.
In May 2017, the Knights filed for bankruptcy in Florida, listing their victims as unsecured creditors of Udoxa. During this process, Trey Knight failed to provide accurate financial disclosures and made false statements under oath regarding his income and liabilities. Both Knights falsely claimed unemployment at a creditors' meeting.
These actions hindered the bankruptcy trustee's ability to execute proceedings properly, resulting in reduced payments to creditors while allowing the Knights to retain undeserved funds.
The Federal Bureau of Investigation is investigating this case with prosecution led by Assistant United States Attorney Jessica M.P. Thornhill.