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Man facing fraud charges after filing personal bankruptcy

When seeking bankruptcy protection, it is absolutely imperative that individuals in California and across the nation follow the letter of the law. There are a wide range of disclosures that must be made, and all income, assets and debts must be included in the paperwork. Failure to do so can result in one's personal bankruptcy being unsuccessful, and it can also lead to criminal charges.

Such is the case for a man accused of bankruptcy fraud after questions were raised about an inheritance he received prior to seeking bankruptcy protection. He disclaimed the inheritance, which was valued at nearly $800,000, in 2009, but he allegedly kept the inheritance. Within the indictment handed down by a federal grand jury, he and his wife are accused of devising a scheme to defraud their creditors.

The man is accused of failing to fully disclose his assets, especially those obtained through the inheritance, and of taking actions to conceal assets from his creditors and the court. Should he be convicted of the five charges against him, he could be sentenced to significant time in federal prison. As the case moves forward, additional details will likely be made public.

This case serves as an excellent example of the importance of proper disclosure in personal bankruptcy filings. Individuals in California and elsewhere must ensure that they are in compliance with all aspects of current bankruptcy law as they move through the process. Failure to do so could result in a wide range of negative outcomes up to and including criminal charges.  

Source: channel3000.com, "Middleton man accused of hiding assets during bankruptcy", March 10, 2015

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