Is U-Save Auto Rental CEO Tom McDonnell Guilty of Bankruptcy Fraud?
Is U-Save Auto Rental CEO Tom McDonnell Guilty of Bankruptcy Fraud? Recent testimony in U.S. bankruptcy court suggests he may be. It’s a crime punishable by a fine up to $500,000, twenty years in prison… or both.
(UnhappyFranchisee.Com) Thomas McDonnell III is the CEO of Franchise Services of North America (FSNA), a corporation that is in deep trouble.
Our recent post U-SAVE Parent FSNA Bankruptcy Rejected reported that the Chapter 11 bankruptcy filing by Franchise Services of North America (FSNA) was dismissed because the court ruled that FSNA had violated the terms of its own Certificate of Incorporation by filing bankruptcy without the consent of its largest shareholder, Boketo LLC, which is owned by Macquarie Capital.
Unhappy Franchisee has obtained the TRANSCRIPT OF FSNA EVIDENTIARY HEARING ON MOTION TO DISMISS in the matter, which includes testimony by FSNA Chief restructuring Officer Jon Nash of Meadowlark Advisors, and Tobias Bachteler, Managing Director of Macquarie Capital.
Jon Nash is an outside bankruptcy advisor who became Chief Restructuring Officer for FSNA. He testified that FSNA counsel acknowledged that they didn’t have the authority to file bankruptcy but were going to do so anyway. His testimony reads:
(ATTY MADDUX) Q And just as — just as they didn’t say, “And, by the way, there might be a little wrinkle here because the 49.76 percent owner of the company is unlikely to consent, and we’re not going to give them that opportunity.” They didn’t say that, right?
(NASH) A They did say that — yeah, actually they did say that.
Evidentiary hearing testimony of Tobias Bachteler, Managing Director of Macquarie Capital, suggests that Tom McDonnell, CEO of U-Save Auto Rental and its franchisor parent, Franchise Services of North America (FSNA), may have committed bankruptcy fraud.
BY MR. MARINO:
Q Mr. Bachteler, I ask you to take a look at the — at Exhibit 11, voluntary petition for non-individuals filing for bankruptcy, do you see that?
A Yes, I do.
Q Okay. I direct your attention to Page 4.
Q Do you see the warning there?
Q And what is the first sentence of that warning?
A It says “Warning: Bankruptcy fraud is a serious crime, making a false statement in connection with a bankruptcy case can result in fines up to $500,000 or imprisonment for up to 20 years, or both.”
Q And this was a document that was executed on June 26th, 2017, correct?
Q And you see that it’s signed by Thomas P. McDonnell the Third, yes?
Q Did Boketo and Macquarie understand Exhibit 11 to constitute a sworn representation by Mr. McDonnell that, in fact, he had achieved or secured all of the authorization he needed to file this bankruptcy petition?
A It did.
Q Do you have any doubt whatsoever that that was a false statement?
A I don’t have any doubt.
Tom McDonnell Declared – Under Penalty of Perjury –That He Had Authority. He Didn’t.
Here is the declaration made by Tom McDonnell that he had authority to petition for Chapter 11 bankruptcy – under penalty of perjury and subject to a potential $500,000 fine and up to 20 years in prison.
Sources tell us that McDonnell may have committed the fraud in order to put the company into bankruptcy in an attempt to buy it back himself out of the bankruptcy sale.
We welcome other opinions, viewpoints or rebuttals.
U-SAVE Parent FSNA Bankruptcy Rejected
U-Save Parent FSNA Bankruptcy Filing – Franchise Services of North America
U-SAVE Car & Truck Rental 2017 Franchise Disclosure Document is Not Pretty
MACQUARIE CAPITAL vs. FRANCHISE SERVICES OF NORTH AMERICA
U-SAVE Franchise Lawsuits American Car Rental Association (ACRA)
Brad Kjar Earn Pinocchio Award
ARE YOU FAMILIAR WITH FRANCHISE SERVICES OF NORTH AMERICA (FSNA), U-SAVE AUTO RENTAL OR CEO TOM McDONNELL? SHARE A COMMENT BELOW.
TAGS: FSNA, Boketo, LLC, Macquarie Capital, U-Save bankruptcy, Franchise Services of North America bankruptcy, FSNA bankruptcy, U-Save franchise complaints, U-Save, U-Save franchise, U-Save complaints, U-Save Car and Truck Rental, U-Save Car and Truck Rental franchise, Tom McDonnell, Thomas McDonnell III, Michael John Silverton, Daniel Raymond Boland, U-Save Holdings Inc., Franchise Services of North America Inc., FSNA, Boketo, LLC, Macquarie Capital Inc.
6 thoughts on “Is U-Save Auto Rental CEO Tom McDonnell Guilty of Bankruptcy Fraud?”
Mr. Tom McDonnell has always been a true Christain & would not knowingly act unlawful. Any questionable action(s) that he may have taken would be under direction (in this case) of his attorney(s).
I was employed @ U-save Corp for more than a decade working with Mr McDonnell & no way he would intentionally act outside God’s word, much less the law.
Flavio Ruiz Sr
Thank you for your comment. Your opinions and viewpoint are welcome here, as are any examples or stories that may enlighten us as to the honesty and Christian ethics of Mr. McDonnell & USave.
Please clarify one thing if you would. You wrote: “Mr. Tom McDonnell has always been a true Christain & would not knowingly act unlawful. Any questionable action(s) that he may have taken would be under direction (in this case) of his attorney(s).
“I was employed @ U-save Corp for more than a decade working with Mr McDonnell & no way he would intentionally act outside God’s word, much less the law.”
If Mr. McDonnell took questionable and/or unlawful actions, or acted out side of God’s word, under the direction of attorneys he hired and paid for, would he be any less guilty in the eyes of the law? In the eyes of God?
When Eve violated God’s word, she was under direction of the serpent. When Adam violated God’s word, he was under the direction of both Eve & the serpent. Having had bad advisors didn’t keep God from banishing them from the Garden of Eden. Will God judge business owners less harshly if they were just following their attorney’s advice?
I believe the contrary bc, Mr McDonnell was represented by his Attorney(s) who(m) are experts in bankruptcy law. It appears they also were noted on accusing document (herein evidence). He hired an attorney to guide & direct him. No way Mr McDonnell would have signed anything with bad intentions and without direction. We had prayer at our Corp office to anyone of us (Corp employees) that wanted to. I worked close enough to know his character as well. He is also a fair individual & continuously demonstrated his Christian beliefs in his daily work ethics as well as relationships. Today I am a huge beliver & do my best on doing God’s work including ministry at senior home, many seniors in their last days. Again the Adam & Eve scenario could be similar but certainly not close enough. Adam was enticed by his mate & Satan (serpent) who have powers like our God & took advantage of God’s absence. I am not sure of Mr McDonnell’s state of mind, then & now due to the storm he’s under, but I know he would not have gone against his attorney’s guidance & no doubt his attorney should have caught the mistake & advised Mr. McDonnell accordingly.
Flavio Roland Ruiz I am not sure if you are serious or a parody writer. If parody, I salute you sir. If not, please do not vote in any more elections, ever. You are, no doubt, a Trump supporter who believes the Donald is a good Christian man being unfairly attacked by those who want to take the Christ out of Christmas.
“He hired an attorney to guide & direct him. No way Mr McDonnell would have signed anything with bad intentions and without direction.”
If Mr. O’Donnell’s lawyers told him to jump off a bridge, would he? If the answer’s YES, can you ask them to do so?
“We had prayer at our Corp office to anyone of us (Corp employees) that wanted to.”
“…Please God, get me the F- out of here and into another job… any job…”
“Adam was enticed by his mate & Satan (serpent) who have powers like our God & took advantage of God’s absence.”
I am sure that Adam would not have acted with bad intentions and without direction. I am sure he acted on advice of his lawyers who told him to proceed with biting the apple since God’s oral contract was clearly unenforceable. Plus, there was no warning signage posted at the Tree of Knowledge, which was clearly required.
Actually I am sure you are a Democrat by the methods you use of failing to participate in America’s DUE PROCESS! Be aware that we do have due process & while you 1st indicate by reverse assumption that I am Republican. The left , including you has demonstrated no due PROCESS! BTW I am also a proud Christian & Texan!
As a former employee of 10 years, to what do you attribute the decline and ultimate downfall of U-Save Auto Rental?
From my understanding (correct me if I’m wrong), U-Save is bankrupt and barely functioning.