October 6, 2026
The Odd Case of Midstream Lighting Takes Another Turn
Trustee lists fraud, embezzlement claims against former Midstream execs
When sports lighting maker Midstream Lighting Inc. filed for Chapter 7 bankruptcy liquidation last September, creditors were told not to bother filing claims. There was nothing to divide. On September 24, trustee Lisa Barbacci told the bankruptcy court in Akron she now expects there will be money to distribute.
The clerk followed with a notice giving creditors until January 4, 2027, to file proofs of claim. The more consequential shift is who is making the case. When we first reported on Midstream, the allegations against its former executives came from the company's own board. They now appear in a report from the Chapter 7 trustee, listed as property of the estate.
The claims remain unproven. The filings we reviewed show no lawsuit yet filed against the former executives in the bankruptcy. No criminal charges have been filed.
What the Trustee Listed
Barbacci's September 24 asset report names claims against former president James McCarty, Gail McNulty, Dan Schoen, and Brad Rockholt, along with Athletic Lighting Solutions Inc. Rockholt is newly named; our first story described him only as another former employee.
The listed causes of action include fraud, conversion, embezzlement, fraudulent transfers, and "unauthorized use of company's credentials to commit fraud." Against ALS she also lists successor liability, a legal theory that could seek to hold ALS responsible as a successor to Midstream. She also lists Midstream's office furniture and computers, both "maintained at an unauthorized location."
So far the estate has received nothing. Every asset is carried at a $1 placeholder, for a book total of $8. Her projected final report date is March 31, 2028, which suggests she expects a long road.
The RedHawks Settle
The first lawsuit is over. Fargo Baseball LLC, owner of the Fargo-Moorhead RedHawks, dropped McCarty from its federal case in March. In August it told the court it had settled with McNulty and Schoen, a deal that also ended its claims against ALS and the other entity defendants.
The case closed August 24. The docket does not disclose terms. Claims against Midstream Lighting Inc. itself had been paused by the bankruptcy since last fall.
Two Accounts of the Same Company
Midstream's side arrived last October in a statement provided through Scott Belhorn, the attorney representing Midstream Lighting Inc. in the bankruptcy and a former Justice Department trial attorney. It said the UK parent believed the U.S. company was dormant and that former executives had "misused the Midstream name and corporate identity without authorization." The matters "were reported to law enforcement," it said, and the company's representatives are "fully cooperating with the appropriate authorities." There is no public record of criminal charges, and we have not independently confirmed any investigation.
Days earlier, McCarty's attorney, Christopher Klink, had written to us that McCarty and the parent "were in continuous communication regarding the operation of the U.S. entity."
McCarty's Response
McCarty has denied wrongdoing from the start. "I categorically deny any allegations of wrongdoing," he told us in September 2025. "The claims rely on a false timeline and mischaracterize conduct during my tenure."
In October 2025, Klink sent us a cease-and-desist letter calling the fraud allegations "entirely without merit" and threatening legal action against Inside Lighting. We sent written questions in November and a follow-up after that. Neither drew a reply. We contacted Klink earlier today about the trustee's filing and will update this story if he responds.
The Reach of the Creditor List
The notice went to roughly 40 parties, and the names show how far Midstream's business extended: the North Coast Athletic, Ohio Athletic, and Peach Belt conferences, the Frontier League, the American Association of Professional Baseball, Wilmington College, Wilmington High School, and vendors including Synapse Wireless.
Appearing on the list does not mean a party lost money. Which of them paid deposits, and to which company, is something the claims process may begin to show.
What Comes Next
Creditors have until January 4 to file. Any claims against McCarty, McNulty, Schoen, Rockholt, and ALS could be tested in adversary proceedings, lawsuits filed inside the bankruptcy case. None have appeared yet.
The final out came a year ago. The officials continue to review the tape.
Note:
Midstream Lighting Inc., the Ohio company in Chapter 7 liquidation, is a separate legal entity from London-based Midstream Lighting Ltd. The UK company is listed as a creditor in the bankruptcy, and no related public allegations have been made against it.
