A Statesboro man facing felony charges in Bulloch and Toombs counties for alleged financial wrongdoings is now facing federal charges as well.
Carroll Belton “Tray” Baird was indicted by a federal grand jury in U.S. District Court this week.
According to court documents, Baird was indicted for acts reportedly connected to his bankruptcy case, including:
- Embezzlement from Bankruptcy Estate
- Concealment of Bankruptcy Assets
- Making a False Declaration in Relation to a Bankruptcy Proceeding (4 counts)
Court documents contend that Baird’s misdeeds were committed during the time his bankruptcy case was pending and he was in the stage of negotiating with creditors. Under federal law, the initiation of a bankruptcy, which for Baird was for his business in 2019, triggers the creation of a bankruptcy estate. The estate includes all of the legal and equitable interests of the debtor (Baird) at the time of the filing – regardless of where the property is located and who is possessing it. When a business is involved on the debtor side, the court either appoints a trustee or allows the debtor to continue operating the business (debtor-in-possession). If operations continue under the business owner, substantial actions outside of regular business must be approved by the court. The trustee otherwise oversees the administration of the bankruptcy estate and the debtor who continues to operate the business.
Timeline
In Baird’s case, court documents from Baird’s bankruptcy detail a timeline of financial issues, including his business, Belle Creole, LLC, which was created in March 2014 by Neil Baird, Tray Baird’s brother. In July 2014, Tray Baird filed bankruptcy for his personal finances and received a discharge in December 2014. On March 27, 2015, Belle Creole LLC purchased Nevil Tire in Statesboro with a $577,000 loan from the Small Business Administration through the Bank of Dudley. Neil Baird was the guarantor on the SBA loan because of Tray Baird’s poor credit after bankruptcy. Tray Baird contributed $60,000 toward closing costs and working capital and on May 1, 2015, Neil Baird transferred 50% of his Belle Creole LLC interest to Tray Baird. Four months later, he transferred the remaining 50% interest to Tray Baird. Tray Baird was then the sole member of Belle Creole LLC.
In December 2015, Baird created Portal Financial Consulting, LLC and 11 months later, entered into a purchase agreement to purchase the property where Nevil Tire was located. The purchase price was $1,000,000 and the owners of the property at the time financed the transaction.
In May 2017, Baird created NT Auto Sales Division LLC. In October 2017, Portal Financial sold property at 2585 Northside Drive West in Statesboro for $248,000. The total proceeds were $48,544.41.
In January 2018, Baird borrowed $66,000 from Queensboro Bank with his personal home as collateral. Less than three months later, on March 1, 2018, Baird transferred his personal home to his spouse, Susan Baird. On March 29, 2018, Portal Financial sold the property at the Nevil Tire location for $1,300,000, with net proceeds of $296,415.49.
In January 2019, Nevil Tire relocated to 173 Jimps Road in Statesboro and Portal Financial rented the location for $11,100 per months. Belle Creole LLC held the sublease. The rent at the new location was $5,000 more than the previous location.
On February 22, 2019, Belle Creole LLC filed a bankruptcy petition under Chapter 11 (reorganization). Baird became the debtor in possession and fiduciary of the bankruptcy estate. On January 15, 2020, the Bankruptcy Court for the Southern District of Georgia converted Belle Creole LLC’s bankruptcy to liquidation under Chapter 7.
Charges in the Indictment & Possible Penalties
The charges suggest that Baird acted outside of what was permitted by the court while the Belle Creole LLC bankruptcy was pending.
In total, Baird was indicted on six counts.
- Embezzlement Against a Bankruptcy Estate
- Concealment of Bankruptcy Assets
- Making a False Declaration in Relation to a Bankruptcy Proceeding (x4)
If convicted, Baird faces the following for each count:
- 1-5 years in prison (up to 30 years total)
- $250,000 fine ($1.5 million total)
- 3 years of supervised release (up to 18 years total)
- $100 special assessment ($600 total)
Other Charges
Baird was arrested by the Statesboro Police Department in January of this year on warrants alleging he stole $25,000 in vehicle down payments from Vaden Nissan in Statesboro. Warrants for two counts of Felony Theft by Deception were taken out and Baird was booked into the jail. Once he bonded out, he was booked into the Toombs County Jail for other alleged financial crimes the following day.
Both cases remain pending. The Bulloch County case was indicted by a grand jury in November, which subsequently added four more charges to Baird’s indictment. He faces a total of six charges: Theft by Deception (2), Identify Fraud (2), and Forgery (2).
