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Barry E. Sanders, Bankruptcy Fraud, Kentucky 2013

Published December 10, 2019

Former CEO of Trailblazers, Inc. Sentenced for Bankruptcy Fraud

In a shocking turn of events, Barry E. Sanders, the former owner and CEO of Trailblazers, Inc., an auto and truck parts supply business formerly located in Lexington, has been sentenced to 18 months imprisonment for bankruptcy fraud.

According to court documents, Sanders had previously admitted in U.S. District Court that, while Trailblazers, Inc. was in the process of contemplating bankruptcy in the summer of 2013, he transferred $315,000 from the business to his personal banking accounts, using four cashier’s checks.

Sanders then knowingly concealed the receipt of those funds, by failing to report the cash transfers on Trailblazers’ corporate bankruptcy filings in August 2013, as required by federal bankruptcy law.

The sentence was handed down by Senior U.S. District Judge Joseph M. Hood, who ordered Sanders to serve 85 percent of his prison sentence.

Under federal law, Sanders will be under the supervision of the U.S. Probation Office for three years, following his release.

The investigation leading to Sanders’ conviction was conducted by the Federal Bureau of Investigation.

The United States was represented by Assistant U.S. Attorneys Erin Roth and Will Moynahan.

Barry E. Sanders, 64, is the respondent in this case, and was charged with bankruptcy fraud. The crime occurred in Summer 2013. The case was sentenced on 08:00 AM, Wednesday, 08/14/2013, in Lexington, Kentucky. Sanders was sentenced to 18 months imprisonment for bankruptcy fraud. The total amount transferred from the business to his personal banking accounts was $315,000. He will serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years, following his release.

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Source: https://www.justice.gov/usao-edky/pr/former-owner-trailblazers-inc-sentenced-18-months-bankruptcy-fraud