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"Dance Moms" star admits debt reorganization fraud

In California and across the country, people who are overwhelmed with debt may explore many options for relief. They may choose bankruptcy as a means for debt reorganization, though it may not be a pleasant experience if they are dishonest in declaring assets. Concealing earnings and assets may result in serious legal charges.

When a well-known TV star recently declared bankruptcy, it made some suspicious. A bankruptcy judge watching television one night came across the popular "Dance Moms" star Abby Lee Miller, who he knew had filed for Chapter 11 relief. Miller had reported that her income was only $8,899 a month, but the judge suspected she was making more than she claimed.

A subsequent investigation revealed that Miller apparently tried to hide almost $800,000 worth of income from her TV show, spinoffs, merchandise and personal appearances. Additionally, she was accused of smuggling over $120,000 into the country from a trip to Australia by allegedly dividing the money among her traveling companions. Miller pleaded guilty to concealing bankruptcy assets and attempting to evade the law regarding international money transactions.

According to the prosecutors, the "Dance Moms" star faces up to 30 months in prison, but since her creditors sustained no loss, she may receive a sentence of probation. Miller, who lives in California, has accepted responsibility for her actions. Others who file for bankruptcy as a means of debt reorganization may see how serious the consequences are if found guilty of attempting to conceal assets. The advice of an experienced debt consolidation attorney may prevent one from making such mistakes.

Source: heraldnet.com, "'Dance Moms' star Abby Lee Miller pleads in bankruptcy case", June 27, 2016

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