Noticed an update in Dallas Business Journal regarding a lawsuit filed against Joe and Connie Mitchell in 2006.A couple of the complaints by trustee Mims then were:

According to Mims' complaint against the Mitchells, the husband and wife paid themselves more than $30 million over the final three years before the business went into bankruptcy, and also received about $10 million in benefits by helping engineer the acquisitions by Dallas-based VarTec of two businesses in which the Mitchells had ownership stakes.

In addition, Mims' complaint says, the pair also acquired, through a series of complicated transactions, a 7,200-acre ranch in Glen Rose owned by VarTec known as the 10XXX Ranch.

The article goes on to explain that the ranch, named after the 10-10 dial around system (remember all those commercials on teevee?) was valued between 10.4 to 13.4 million. When it was transferred to the Mitchells, Vartec redeemed two percent of its stock from a shareholder, who ended up owning the ranch and selling it to the Miitchells for 9.5 million. Then, the Mitchells leased it to a VarTec unit for 100,000 per month.

In 2005, VarTec reorganized under bankruptcy. Why?

Founded in 1989 by Joe and Connie Mitchell, along with their friend Ray Atkinson, VarTec helped pioneer the dial-around longdistance business - allowing customers to get discounted longdistance rates on calls by dialing 10-10 plus an access code. But the popularity of cell phones and steep decline in long-distance rates has hammered margins and wounded the dial-around business. Another setback: Hoover says Joe Mitchell told him people were not opening direct mail - a primary means of solicitation for VarTec's services - following the Sept. 11, 2001 attacks and subsequent anthrax mailings that created a nationwide scare.

Interesting article in which the banks were said to be part of Vartec's failure-BECAUSE THEY SET RESTRICTIONS! About the merger between VarTec and Lightyear

Who is to blame for the merger falling apart? The banks, say sources. They wanted to play hard ball with VarTec, imposing rigid restrictions on the debt the company would assume on behalf of Lightyear, according to one source, "They wanted to put a lot of restrictions on it and Joe [Mitchell Jr., VarTec chairman] doesn't need restrictions," the insider told PHONE+.

In 2007, United States Bankruptcy Judge said, in Case No 04-81694-HDH-7 that

This Court recognizes that extending officers’ and directors’ duties to creditors when a corporation nears insolvency creates many issues for such officers and directors and the professionals providing them advice. However, this case revolves not around what the law should be, but what the law is. Both Texas and Delaware law recognize a cause of action for breach of fiduciary duty against the directors or officers of a corporation may be brought by the creditors of a corporation when the corporation is either insolvent or in the "zone" or "vicinity of insolvency" which is what the Trustee has pled in this case. Accordingly, Defendant’s Motion to Dismiss is hereby

 Mitchells are seeking an end to the lawsuit.