WACO, Texas — One of the owners of Temple-based company Moonlight Pool and Spa filed for Chapter 7 bankruptcy on April 11, 2024, according to documents filed in U.S. Bankruptcy Court in Waco.
The documents show Kevin Lock owes money to as many as 275 different creditors totaling between $1 million and $10 million. The Bankruptcy Noticing Center sent each of them a letter via first class mail on April 14.
Retired criminal prosecutor Veryl Gambino said in such a filing, each creditor has to file a claim for how much is owed, as well as what money was loaned for.
"The court will determine whether the payments have to be made or the judgement is going to be made," Gambino said.
Lock, along with Mikeal Rem, is accused of leaving dozens of customers with unfinished pools all across Central Texas. As of April 23, there was nothing filed under the name of Mikeal Rem.
Gambino, who is not representing any parties in this case, said the filings show a clear pattern of fraudulent business practices.
"(Lock's) taking your money, it's going to take this long and (Lock's) going to give you a pool at the end of it.' And he's done none of that," Gambino said.
In the filing, Lock's assets are listed between $100k and $500k, which is a fraction of the cost of his liabilities, or money owed. Gambino said these debts will likely not be paid back in whole to creditors or customers.
"A judge might say 'ok, it's terrible he took a lot of people for money but he didn't do anything violent. So we're not going to send him to prison, we're going to put him on probation,'" Gambino said. "But nobody's going to be made whole by this, there's too much owed."
As for Lock's business partner, Mikeal Rem, Gambino said creditors would be well within their rights to go after him for compensation, given that no bankruptcy filing has been filed under Rem's name to this point.
The court said Lock must attend a meeting with creditors, including customers, on May 16 at 10:30 a.m. to answer questions under oath.
The Bell County District Attorney's Office is also investigating Moonlight. As 6 News reported on April 15, the DA's office is asking customers for more documentation of their business dealings with the company.
According to the documents, the filing temporarily prevents most collection activities.
"This means that creditors generally may not take action to collect debts from the debtors or the debtors' property," the document reads. "For example, while the stay is in effect, creditors cannot sue, garnish wages, assert a deficiency, repossess property or otherwise try to collect from the debtors. Creditors cannot demand repayment from debtors by mail, phone or otherwise. Creditors who violate the stay can be required to pay actual and punitive damages and attorney's fees. Under certain circumstances, the stay may be limited to 30 days or not exist at all, although debtors can ask the court to extend or impose a stay."
Chapter 7 bankruptcy is available to individuals who cannot make regular, monthly payments toward their debts, according to the IRS. It provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent.
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