Ex-Taylor Bus Owner Convicted in Fraud

An Orange man who owned Taylor Bus Service, until last year one of the largest school bus companies in California, was convicted of bankruptcy fraud Friday in U.S. District Court.

Thomas W. Berthold, 47, was found guilty after a three-day trial before Judge Harry L. Hupp and faces a maximum penalty of 10 years in prison and a $500,000 fine. Sentencing was set for March 12.

Berthold’s now-defunct Anaheim company once had contracts to carry students for the huge Los Angeles Unified School District as well as for school systems in San Jose, San Diego and six Orange County school districts, including Santa Ana.

Berthold was convicted of selling a piece of property in Vernon for $1.7 million after his company’s May, 1988, bankruptcy filing, and then concealing the transaction. He was also convicted of one count of withholding documents and four counts of criminal contempt for violating bankruptcy court orders.

The conviction marks the end of a dramatic fall from grace for Berthold and Taylor Bus Service, which at its peak had revenues of about $30 million.

But in 1987 the company became embroiled in a dispute with several school districts, including Los Angeles, over the adequacy of its liability insurance, and Taylor soon lost two-thirds of its business.

Taylor sold most of its assets, including buses and the remaining service contracts, to Ryder System of Miami, Fla., in September, 1988.

Berthold could not be reached for comment Friday.