Trailblazers Owner Pleads Guilty to Bankruptcy Fraud

Barry E. Sanders, 63, the former owner and CEO of Trailblazers, Inc., an auto and truck parts supply business formerly located in Lexington, Kentucky, has pleaded guilty to violating U.S. bankruptcy laws.

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

"The defendant took advantage of a process designed to aid troubled businesses," said United States Attorney Robert M. Duncan, Jr. "His conviction demonstrates that the government will not tolerate business owners violating the bankruptcy system for personal gain."

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.

Sanders faces up to 5 years in prison and a fine of $250,000. Before imposing a sentence, the Court will take into consideration the U.S. Sentencing Guidelines and federal sentencing statutes. Sanders is scheduled to be sentenced on December 9, 2019.

The case serves as a reminder that the government will hold business owners accountable for their actions, especially when it comes to violating the bankruptcy system. As Attorney Duncan stated, the government will not tolerate business owners taking advantage of the system for personal gain.

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