CEO of Bankrupt Oil Company Faces Tax Evasion Charges

The chief executive officer of a distressed oil company in Kentucky is now also facing tax evasion and fraud charges which may complicate his bankruptcy filing.

Anthony Young, CEO of Young Oil, was indicted on tax law violations this week, including a failure to pay roughly $1.6 million in taxes over a two-year period, according to Bloomberg. The charges go back to 2005 and 2006, during which periods Young is accused of failing to pay $496,000 and $1,167,000 million in taxes.

The most recent charges represent another chapter of Young’s complicated legal issues that arose immediately following his company’s bankruptcy petition three years ago. Young’s company ran into financial issues in 2009 and was forced to file for bankruptcy. Two months after the filing, Franklin Circuit Court Judge Thomas Wingate found that the company had committed fraud and other violations, and owed the state of Kentucky $20 million.

The fraud charges go back to 2008, when the Kentucky Department of Financial Institutions froze the company’s assets following a string of investor complaints. Young had raised roughly $20 million from investors between 1997 and 2008, but the court found that Young was misusing and misappropriating investor funds, and had defrauded and misled investors about the company, Bloomberg explains.

“Mr. Young used his profiteering scheme to purchase a Lear Jet, an $86,000 Corvette, and various vacations to the Caribbean,” Wingate wrote in his findings, according to Bloomberg. “Additionally, Mr. Young sponsored a racing company and lived a lavish lifestyle, all at the expense of misinformed investors.”

However, U.S. Bankruptcy Judge Joan Lloyd blocked the state’s collection attempts following the company’s bankruptcy filing. In addition to tax evasion charges, Young is also being sued by a U.S. bankruptcy trustee.

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Frank Brunetti has been practicing law for over thirty years in the areas of estate and wealth preservation, tax planning for business entities and complex tax matters. He is admitted to the New Jersey and New York Bars as well as the United States Tax Court. Mr. Brunetti provides representation in federal and state tax matters, IRS controversies, estate and business planning and guidance for the preparation of wills and trusts as well as the administration of estates. For more information, please visit Frank Brunetti's full biography at Scarinci Hollenbeck

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