Shreveport Lawyer Admits to $1M Bankruptcy Scam

SHREVEPORT, LA – James Ward Davis, a 52-year-old attorney from Shreveport, Louisiana, is facing federal prison time after admitting to a brazen scheme to defraud a Texas energy company and then lie about it under oath during bankruptcy proceedings. Davis pleaded guilty today to making a false statement in a bankruptcy proceeding in the Western District of Texas, a charge stemming from the misuse of $1 million in escrow funds.

The scheme unfolded through Tower Hill Energy Company, LLC, which Davis operated while also practicing law at Jones, Odom, Davis & Politz. In February 2009, Tower Hill entered into an agreement with Furie Petroleum to acquire oil and gas leases. Furie deposited $1 million into a client trust account at Davis’s law firm, specifically earmarked “solely for the acquisition of Mineral Leases.” That’s where the honesty ended. Davis swiftly transferred the funds to a Tower Hill escrow account and then, according to court documents, began treating it like a personal slush fund.

Instead of securing mineral rights as agreed, Davis diverted the $1 million to cover personal and unrelated business expenses. When Davis and his wife filed for Chapter 7 bankruptcy in the Western District of Louisiana in June 2010, the deception continued. They attempted to convert the case to Chapter 11, and during a hearing that August, Davis brazenly testified under oath that Furie Petroleum was aware of how he’d spent their money. This was a lie. Davis never informed Furie that he’d transferred the funds and used them for his own purposes.

The investigation, led by the Federal Bureau of Investigation, revealed a calculated effort to mislead creditors and conceal the misappropriation of funds. Davis’s legal background didn’t offer him any protection; the evidence clearly showed a deliberate attempt to defraud Furie Petroleum and the bankruptcy court. The Department of Justice, through Assistant U.S. Attorney Frank Coan, built a solid case based on financial records and courtroom testimony.

Davis now faces a grim future. He’s looking at a potential five-year federal prison sentence and a hefty $250,000 fine. A sentencing date has not yet been set, but the judge will undoubtedly consider the calculated nature of the fraud and Davis’s attempt to deceive the court when determining the punishment. This case serves as a stark reminder that even those sworn to uphold the law are not above it.

This isn’t just a financial crime; it’s a betrayal of trust. Davis leveraged his position as an attorney to exploit a business partner, and then compounded the offense by lying to the court. The Grimy Times will continue to follow this case and report on the sentencing, ensuring accountability for those who abuse their power and exploit the legal system for personal gain.