The bankruptcy process was designed to be a tool for debt relief for those struggling with financial insolvency, but not everyone seeking help is doing it honestly. Last week, a California man was sentenced to jail for bankruptcy fraud.
A business man in California filed for bankruptcy in 2005, submitting paperwork riddled with lies. After divorcing his wife a few years prior, the man made calculated steps to hide millions in cash and assets behind the names of others. Keeping in line with his profession as an investor, the man reportedly hid $4 million from his ex-wife and the bankruptcy court in his filing.
After calling the FBI to investigate his ex-wife for allegedly breaching confidential records in her profession, the man ended up blowing the whistle on himself. After an exhaustive investigation spanning years, the man was officially charged with 15 counts of money laundering and bankruptcy fraud last summer. Sentenced last week, the California business man will now find himself behind bars for the next 17 years.
Bankruptcy fraud is a serious crime and anyone considering bankruptcy should always be honest about the nature of their financial affairs and follow the guidance of their Huber Heights bankruptcy lawyer. Don’t risk losing your case or your freedom over attempting to defraud the system.