An Oklahoma businessman is now facing the full weight of more than $120 million in debt after a federal investigation exposed his attempts to hide significant assets from the court.
Michael Ray Friday voluntarily gave up his bankruptcy discharge after the U.S. Trustee Program uncovered a trail of undisclosed income and secret financial accounts.
The Bankruptcy Court for the Western District of Oklahoma approved the voluntary waiver on July 1, ensuring that Friday remains legally liable for his massive debts.
According to the Department of Justice, this ruling means that creditors are now free to pursue Friday for payment once the bankruptcy case is officially closed.
Friday had initially filed for a Chapter 7 liquidation case in August 2024, a move that came shortly after a business setback.
The filing followed a judgment of more than $58 million against him by a company that had purchased his power line construction business.
Investigators from the Oklahoma City office of the U.S. Trustee Program found that Friday’s bankruptcy documents were riddled with omissions and misrepresentations.
The federal probe discovered that Friday failed to disclose approximately $400,000 in income and several private financial accounts.
Despite Friday’s formal claims to the court that he was unemployed, his bank records showed a pattern of large cash deposits and withdrawals that he could not explain.
The Department of Justice also alleged that Friday used his funds to make monthly payments toward a home loan for his son without disclosing the expenses.
To further protect his wealth from those he owed, Friday reportedly orchestrated a rapid divorce to transfer real estate holdings to his former wife.
This strategic divorce was viewed by authorities as an attempt to shield valuable property from being seized by his creditors.
Friday agreed to the waiver of his discharge just before a trial was set to begin regarding the complaint to deny his bankruptcy protections.
U.S. Trustee Ilene Lashinsky, who oversees the region including the Western District of Oklahoma, emphasized the importance of transparency in these legal proceedings.
Expressing the government’s commitment to oversight, Lashinsky stated that “dishonest debtors undermine the integrity of the bankruptcy system.”
Lashinsky further noted that the debtor misrepresented his financial position and sought to exploit nation’s bankruptcy laws for his own selfish gain.
The U.S. Trustee Program operates with the mission to promote the integrity and efficiency of the bankruptcy system for debtors, creditors, and the public.
The Department of Justice continues to monitor such cases closely, as seen in a similar recent investigation involving an Iowa man who waived a $17.7 million discharge.
Authorities maintain that the system relies on the honesty of those seeking relief, and the program will continue to hold those who abuse it accountable.