Dallas man Gary Beach, 66, was convicted Wednesday on four felony counts tied to a brazen bankruptcy fraud scheme, following a seven-day trial in federal court. The verdict, delivered before U.S. District Judge David Godbey, marks a hard fall for Beach, who tried to conceal a stream of $15,000 monthly payments and a luxury Highland Park home worth nearly $1 million while seeking protection from an $812,000 judgment he couldn’t pay.
The scam began after Beach lost a civil lawsuit in Harris County, Texas, leaving him on the hook for $812,000. Rather than face the financial reckoning, he turned to a trust set up by his father—Beach 2010 Trust—and funneled money through it to hide his income. He signed a deal with Black Horse Resources, a Utah-based firm owned by his brother-in-law, agreeing to provide consulting services in exchange for a $15,000 monthly management fee. But the contract listed the trust as the recipient, not Beach personally—though he and his son were the sole trustees and beneficiaries.
With total control over the trust, Beach directed nearly $10,000 a month to cover his personal living expenses. Three months later, he upped the deception: forming Beach Petroleum, LLC, with himself as sole manager, and transferring the trust’s interest in the consulting deal to the new shell company. From that point on, the $15,000 payments flowed directly to Beach Petroleum—putting the cash firmly under his thumb.
Before filing for bankruptcy, Black Horse had paid $120,000 to Beach—some directly, some through Beach Petroleum. The payments kept coming, totaling $210,000 by the time of his bankruptcy deposition. Beach told no one. He filed paperwork under penalty of perjury, omitting all income from the consulting work. It wasn’t until he was cornered by evidence during cross-examination that he admitted the payments existed. Even then, the cash didn’t stop—eventually nearing half a million dollars.
Adding insult to injury, just three days before filing for bankruptcy, Beach used the trust to buy a $857,500 home in Highland Park. He poured more money into upgrades, pushing the property’s value close to $1 million. The luxury purchase, made while dodging a court-ordered debt, became a key piece of evidence in the prosecution’s case. The United States Trustee’s Office flagged the inconsistencies, triggering a federal investigation.
Beach now faces up to five years in federal prison and a $250,000 fine on each of the four counts: three for Making False Statements Under Penalty of Perjury and one for Making a False Oath during his deposition. He remains free on bond ahead of sentencing, scheduled for June 4, 2018. The case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorneys David Jarvis and Walt Junker. Tanya K. Pierce, Acting U.S. Attorney for the Northern District of Texas, announced the conviction.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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