- Law Cases
by Sharon Rondeau
(Feb. 8, 2012) — Last October, The Post & Email had reported on the case of Jeffrey Baron, a businessowner whose company, Ondova LLC, was reportedly forced into bankruptcy unnecessarily and who is now under house arrest by order of a receiver appointed by federal Judge Royal Furgeson. The order of receivership includes “Jeffrey Baron and the following entities:…and any entity under the direct or indirect control of Jeffrey Baron, whether by virtue of ownership, beneficial interest, a position as officer, director, power of attorney, or any other authority or right to act.”
The case has been appealed to the Fifth Circuit Court of Appeals, but a source told us on January 11 that “no response is expected…The bankruptcy court judge held actual contempt proceedings, and does not appear to have issued any order on that yet.’”
The same informed source stated the following:
…The District Judge held secret, off-the-record proceedings, and signed the order placing Jeff into receivership before the motion for receivership was filed. The evidence also shows that Vogel and Sherman were privy to the secret ex parte proceedings.
We’ve also been able to do a very detailed review of a large body of bankruptcy documents and have shown step by step the status of the Ondova bankruptcy. The court filings report that the bankruptcy had over a million dollar surplus — above all creditor claims in September 2010. Both the surplus and most of the money that would have gone to the creditors has now been used up by the Trustee and his attorneys in their massive billing.
The Post & Email contacted the Trustee of the U.S. Bankruptcy Division of the U.S. Department of Justice by email and formal letter twice each with no response. We also wrote to the U.S. Attorney for the Northern District of Texas on January 8, 2012 but have heard nothing back.
Several other online publications have reported on Baron’s case. While Baron has told The Post & Email that he did hire many lawyers to represent him at both the state and federal levels in an onslaught of lawsuits, despite what might be reported in the news, he claims that all of them were paid.
Mr. Baron’s state representative and state senator have been contacted as well as U.S. Representative Kenny Marchant, whose media contact person did not return our phone call. This morning we contacted Marchant’s office again, asking for the media contact, whom we were told was “out with the congressman.” We were told that he “responds better to email” and were given his email contact information. We then sent the following message:
Hello, Mr. Moy, I contacted you back in the fall regarding the case of Rep. Marchant’s constituent, Jeffrey Baron, who has been held under house arrest since November 2010, most likely unconstitutionally, by order of the Receiver placed over his assets by Federal Judge Stacey J.C. Jernigan. From what I understand, Mr. Baron’s phone calls, email, expenditures and personal mail are monitored, and he has been unable to pay for necessary medical care in some instances. Mr. Baron has neither been accused of nor convicted of a crime.
The following is the text of our second letter to the U.S. Attorney.
February 8, 2012
U.S. Attorney Sarah Soldana
US Attorney’s Office, Northern District of Texas
1100 Commerce Street
Dallas, TX 75242
Dear Ms. Soldana:
RE: CASE NO. 09-34784-SGJ (Chapter 11)
I am writing to follow up on my letter of January 8, 2012, in which I informed your office of a probable crime occurring within a case managed by a federal judge, Stacey J.C. Jernigan.
I have recently been contacted by someone who informed me that he and a family member have been threatened with harm as a result of their support of Mr. Baron, the owner of the company which was forced into bankruptcy and whose creditors reportedly could have been paid but have not. He has stated that local law enforcement have been made aware of the situation but have failed to act on his behalf and may even be involved in some type of wrongdoing.
I feel it is my responsibility to report this to an authority who could investigate the matter and prevent harm from befalling anyone.
Please contact me if you have any questions.