"Firm founder indicted in bankruptcy fraud Authorities say moneywas diverted while Arrow Express owed $2 million"

The Milwaukee Journal Sentinel (Milwaukee, WI), April 8, 1998

The founder and former owner of Milwaukee-based Arrow Express delivery service was indicted Tuesday on charges of bankruptcy fraud in the alleged diversion of more than $180,000 in company funds.

The indictment also charges Gary A. "Bud" LaCourt, 35, of the 3600 block of W. Armour Ave., Greenfield, with conspiracy and tax evasion.

LaCourt founded Arrow Express in 1990. The delivery service in 1995 billed itself as America's fastest-growing transportation company. He opened his first office in his bedroom and eventually built the business in five years to more than $6 million in sales and more than 280 employees in Milwaukee, Green Bay, Madison and Atlanta. But in mid-1995, Arrow Express filed for bankruptcy, and Tuesday's grand jury indictment of LaCourt alleges the firm had debts in excess of $2 million then, including $550,000 owed to Heller Financial Service and $450,000 owed to the Internal Revenue Service. The indictment alleges that LaCourt devised a scheme so that more than $180,000 in payments owed to Arrow Express were diverted to other business entities, thereby defrauding the federal bankruptcy court trustee and Arrow Express creditors. The indictment claims that as part of that alleged scheme, LaCourt established mail drops to conceal the receipt of funds, created new corporations to commingle and launder Arrow Express funds that were received and provided false financial information to the bankruptcy court trustee. The indictment also alleges that LaCourt filed a bankruptcy petition in July 1995 with the federal bankruptcy court in Milwaukee as part of the scheme and concealed from the IRS the extent of assets controlled by him at Arrow Express Inc. The indictment says LaCourt failed to pay more than $300,000 in federal employment tax for the business and conspired with people unknown to the grand jury to conceal company proceeds by diverting them to another bank account. LaCourt is scheduled to be arraigned on the charges in federal court on April 17. If convicted, he would face as many as 15 years in prison and a maximum fine of $600,000.

"Businessman sentenced to prison in fraud case"

The Milwaukee Journal Sentinel (Milwaukee, WI), December 15, 1998

The founder of a Milwaukee-based delivery service has been sentenced to 18 months in prison for conspiracy to commit bankruptcy fraud and tax fraud.

Gary A. "Bud" LaCourt, 36, who started Arrow Express in 1990, also was fined $1,500 by U.S. District Judge Charles N. Clevert and ordered to make $66,973 in restitution.

LaCourt, who earlier pleaded guilty to the charges, also is to serve two years of probation after his release from prison, and to perform 25 hours of community service during each of those two years. The government alleged that LaCourt devised a scheme to divert payments owed to other business entities, thereby defrauding the federal bankruptcy court trustee and other Arrow Express creditors, including the IRS. The government charged that LaCourt established mail drops to conceal the receipt of the funds, created new corporations to commingle and launder Arrow Express funds that were received and provided false information to the bankruptcy court trustee.