William S. Thompson U.S. Attorney | U.S. Attorney for the Southern District of West Virginia
James Eugene Wells, a 73-year-old resident of Marmet, West Virginia, has entered a guilty plea for withholding records related to the financial affairs of a debtor in bankruptcy. This information was confirmed by United States Attorney Will Thompson.
Court documents reveal that in October 2022, a business owned solely by Wells' wife filed for Chapter 11 bankruptcy. Despite not being an official employee, Wells managed several financial aspects of the business. Between February 2023 and February 2024, he secured five loans under the business's name but failed to inform the United States Trustee responsible for overseeing bankruptcy cases in the Southern District of West Virginia.
During a January 31, 2024 hearing concerning a motion to dismiss the bankruptcy case, Wells' actions came under scrutiny. The business's lawyer informed the U.S. Trustee about one loan at this hearing; however, Wells did not disclose three additional loans during his testimony. Furthermore, he admitted to obtaining a fifth loan on February 8, 2024, without court approval or disclosure to the U.S. Trustee. Subsequently, on February 21, 2024, the court dismissed the bankruptcy case.
The total proceeds from these loans amounted to $68,000 and were used for business operations while incurring $9,700 in fees from lenders.
Wells is set for sentencing on May 5, 2025. He faces up to five years in prison alongside potential penalties including supervised release and fines totaling $250,000.
The investigation was led by the Federal Bureau of Investigation (FBI), with contributions from the United States Trustee’s Charleston field office. The case is being prosecuted by Assistant United States Attorney Jonathan T. Storage under United States District Judge Joseph R. Goodwin.
Related documentation can be accessed through PACER using Case No. 2:25-cr-7.
