A Lancaster County energy and HVAC company that abruptly shut down amid a fraud investigation has filed for Chapter 7 liquidation bankruptcy.
Worley and Obetz in a statement said the Obetz Family and the professionals directing the liquidation are “doing the best they can under these circumstances to find acceptable solutions to the myriad of complex problems presented.”
The Manheim-based company closed its doors Monday in the midst of a fraud investigation involving the company’s CEO.
“Unforeseen financial circumstances forced upon Worley & Obetz and the Obetz Family were a direct result of the fraudulent actions of Jeffrey B. Lyons,” the company said in the statement. “The FBI is currently investigating. This fraud caused a substantial and devastating ripple effect on so many people– employees, customers, suppliers, lenders, creditors and the community.”
Manheim Township police reported they were looking for Lyons after his family reported him missing May 15. Two days later, the police department reported that Lyons had been found.
No charges have been filed.
At least three banks have told the Securities and Exchange Commission they will have losses totaling at least $53 million over fraud tied to a loan.
According to a filing with the Department of Labor and Industry, 150 people lost their jobs due to the closure.