WASHINGTON C.H. — The civil case for an ex-councilman alleged to have taken more than $400,000 from his former employer is now on hold because he filed bankruptcy — for the fourth time.
Trent Dye, ex-councilman for the Washington Court House City Council and former employee at Paramount Freight Systems, LLC, filed bankruptcy April 26 in the United States Bankruptcy Court for the Southern District of Ohio, Eastern Division.
A notice was received by the clerk of courts May 1 in the civil division of the Fayette County Court of Common Pleas.
The Notice of Filing and Stay Under Bankruptcy Code notifies Paramount Freight Systems, Dye’s former employer in Jeffersonville, that Dye filed a bankruptcy petition under Chapter 7. The bankruptcy filing initiates an automatic stay in the continuation of the civil suit filed against Dye.
Paramount Freight Systems has asked Dye to return more than $400,000. The civil suit filed Nov. 30 alleges that Dye defrauded Paramount Freight Systems of the money in a fraudulent scheme of creating fake invoices and depositing payments into a bank account held in Dye’s own name. The suit alleges the illegal activity went on for three-and-a-half-years as Dye worked as a manager for the company. According to Paramount Freight Systems, Dye allegedly has not returned any of the money.
Court records show that Dye quit making payments on a Chapter 13 bankruptcy plan last year. The Chapter 13 had been filed in 2011 and documents indicate Dye made payments on the plan until late 2016. The bankruptcy filing was then dismissed March 13 for non-payment.
Records on file with the United States Bankruptcy Court for the Southern District of Ohio indicate Dye previously filed Chapter 7 bankruptcy in 2001 and Chapter 13 in 2005.
Ashley may be contacted by calling her at (740) 313-0355 or by searching Twitter.com for @ashbunton