Judge approves oil company bankruptcy settlement - WRCBtv.com | Chattanooga News, Weather & Sports

Judge approves oil company bankruptcy settlement

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KNOB LICK, Ky. (AP) - A federal bankruptcy judge has approved a $1.9 million settlement between a bankrupt oil company and its former CEO, who is due to report to federal prison soon.

The trustee for the defunct Young Oil and the one-time operator, Anthony Young, reached an agreement to end litigation over the company's remaining assets and allegations that Young fraudulently transferred funds and equipment as the company went under.

U.S. Bankruptcy Judge Joan A. Lloyd signed off on agreement submitted last week by both sides of the dispute.

Young has been sentenced to 33 months in federal prison for scamming investors into giving him money for three oil partnerships in Kentucky and Tennessee.

The settlement covers allegations that Young used four companies to defraud investors.

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