A business owner who devised a corporate shell game to hide assets from creditors both before and after bankruptcy agreed to waive his bankruptcy discharge of more than $8.4 million in debts after an investigation by the Department of Justice’s U.S. Trustee Program (USTP).
On January 29, the Bankruptcy Court for the Western District of Missouri approved a voluntary waiver of discharge by debtor Bradley James Carlson. As a result, Carlson remains liable for his debts, and creditors are free to pursue payment from him after the case is closed.
Carlson was the owner and chief executive of a holding company and its multiple subsidiaries, which operated several businesses, including real estate ventures and entities that manufactured and sold commercial food trucks.
In November 2023, a state court appointed a receiver over the corporate assets after the businesses defaulted on payments to their primary lender, which also alleged that Carlson and other senior company executives had diverted business funds to buy luxury items, including sports cars and watches, and pay for personal projects such as the remodelling of Carlson’s multimillion-dollar residence.
On the eve of the receiver’s appointment, Carlson transferred the business assets to new entities created by his girlfriend and another executive.
Carlson continued to manage the businesses while he and his staff told customers and other employees that the old companies were being rebranded.
In February 2024, Carlson filed an individual Chapter 7 bankruptcy case to avoid liability under several personal financial guarantees related to his enterprises.
As part of its investigation, the USTP’s Kansas City office subpoenaed bank and business records, which prompted Carlson to create new entities and transfer business assets again. Ultimately, Carlson agreed to waive his discharge.
“The USTP is committed to combating fraudulent and abusive conduct that threatens to undermine the integrity of the bankruptcy system,” said Acting U.S. Trustee Jerry Jensen of Region 13, which includes the Western District of Missouri. “The USTP will enforce the law against those who try to use the system to gain an unfair advantage.”
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders, debtors, creditors and the public. The USTP consists of 21 regions, 82 field offices nationwide, and an Executive Office in Washington, D.C.
