United States Attorney James T. Jacks
Northern District of Texas

WEDNESDAY, FEBRUARY 3, 2010
http://www.usdoj.gov/usao/txn/

ANESTHESIOLOGIST ORDERED TO PAY $80,000 FINE
FOR FELONY CONVICTION RELATED TO BANKRUPTCY FILING

AMARILLO, Texas — Dr. Robert Warren Paige was sentenced today by U.S. District Judge Mary Lou Robinson to three years probation and ordered to pay an $80,000 fine, following his guilty plea in September 2009 to a felony offense related to a bankruptcy filing, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Paige pleaded guilty to a superseding information charging misprision of a felony.

According to documents filed in the case, Paige is a physician, specializing in anesthesia, with special emphasis on pain management. He has care, control, and custody of numerous corporations and business entities.

On February 6, 2004, Paige filed for Chapter Seven Bankruptcy and a Chapter Seven Bankruptcy Trustee was appointed. The bankruptcy case resulted in several adversary proceedings regarding various contested matters. One of the adversary proceedings dealt with Bobladon, Ltd., which conducted business under various names including “Catco.” Catco owned antique classic cars.

The parties entered into a global settlement agreement disposing of the various contested matters in the bankruptcy. The settlement agreement gave the Chapter Seven Trustee full ownership of the following classic cars: 1) a 1935 Lincoln Model K Convertible Coupe; 2) a 1933 Chrysler CL Imperial Sport Phaeton; 3) a 1937 Hudson Deluxe Eight Convertible; and 4) a 1939 Graham Supercharged Convertible Coupe.

The final settlement closing conference was held on August 10, 2006, at which time the Trustee took full title to all the property of the bankruptcy estate. The titles to the above-listed cars were provided to the Trustee with Paige representing that the classic cars were at the full disposition of the Trustee and that they were being stored in a building in Amarillo, Texas.

These representations, however, were false, fictitious and misleading. Paige had transferred the classic cars to an auction house in Ontario, Canada, in May and June of 2006 for them to sell the cars at auction. In fact, the classic cars were auctioned off on August 5, 2006 for a gross sales price of $648,500.

The case was investigated by Internal Revenue Service - Criminal Investigation, and prosecuted by Assistant U.S. Attorney Paulina Jacobo of the U.S. Attorney’s Office in Lubbock, Texas.

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