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Suit alleges business scam cost Corpus Christi-based company millions

SOUTHEAST TEXAS RECORD

Sunday, November 24, 2024

Suit alleges business scam cost Corpus Christi-based company millions

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GALVESTON — An Angelina County man is facing a claim he scammed a Corpus Christi-based company out of millions of dollars through various business dealings.

Hedrick Holdings LP filed a complaint Nov. 17 in Galveston County District Court against Timothy Southwell alleging fraud, breach of contract and other claims.

According to Hedrick Holdings' complaint, Southwell represented himself to be in the business of buying and selling oil field equipment. Hedrick alleges that Southwell never disclosed the fact that he had pleaded guilty to federal indictment for conspiracy to commit wire fraud, that he had several suits filed against him for criminal business dealings and filed for personal bankruptcy.  

Hedrick claims it relied on Southwell's false representations and funded him more than $3 million of dollars for business ventures that included his creating a network of shell companies and trusts. They further claim Southwell used their money to purchase real and personal property for himself and his wife including a luxury home, boat and other property. Hendrick alleges Southwell falsely promised to use their funds for legitimate business purposes and to return his principal with a reasonable rate of return.  

Hedrick seeks monetary relief of more than $1 million, interest, trial by jury and all other just relief. They are represented by David Leonard and Max Brown of Gray Reed in Houston. 

Galveston County District Court case number 22-CV-2144

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