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Debt Management Law News

December 17, 2009

Dr. Jack Holladay Accused of Perjury and Fraud by Bankruptcy Trustee

WILLIAM WEST, CHAPTER 7 TRUSTEE AND HEA CLINIC, P.A.'S
COMPLAINT SEEKING DENIAL OF DISCHARGE

TO THE HONORABLE WILLIAM GREENDYKE,
UNITED STATES BANKRUPTCY JUDGE:

COME NOW, William West, Chapter 7 Trustee ("Trustee") and HEA Clinic, P.A. ("HEA") and files this 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. Based upon Debtor's representations, only a fraction of this income was attributable to salary, the rest is derived from distributions from corporations formed by the Debtor. Debtor valued his interests in these extremely profitable corporations on Schedules Debtor filed March 25, 2003 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 $1,800,000. Debtor submitted in his Schedules, under penalty of perjury, that these two extravagant homes contain personal property worth only $8,835.00.

9. Debtor has insured the personal property in his Bellaire Home at a value of $501,000.

10. Despite repeated requests, Debtor finally produced information relating to his insurance on his Florida property (after Mrs. Holladay's 2004 examination) which shows that Debtor has insured what he claims to be $2,000 worth of property for approximately $300,000.

11. 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.

12. Debtor attempted to hide assets by failing to list a number of personal property items he owns, including, a golf cart, a number of sets of golf clubs, sports equipment, a new grill, silver pieces, 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 Estate after the 3800 - 5500 square foot (depending on whether you include the lanais) estate was purchased in May, 2000 and that Debtor spent $2,000 (the same value he places on the furnishings) to move these furnishings to Florida.

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242

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