Showing posts with label bankruptcy fraud. Show all posts
Showing posts with label bankruptcy fraud. Show all posts
Tuesday, March 29, 2011
Amana Couple Convicted of Bankruptcy Fraud in Pensacola, Florida
The Schuerers were convicted of Bankruptcy Fraud in Pensacola, Florida, and ordered to serve 30 months in in prison, pay a $25,000 fine and a $200 special assessment was imposed on each defendant. Also, the couple was ordered to pay the U.S. Trustee $394,984. So the moral of this story is do not "sell" your property to friends or family prior to filing bankruptcy.
CEDAR RAPIDS, Iowa - Gerald and Fay Schuerer of Amana were convicted of defrauding bankruptcy creditors out of more than $350,000 in property this week following a six-day trial in Pensacola, Fla.
Gerald Schuerer, 60, and Fay Schuerer, 58, were convicted of mail fraud and bankruptcy fraud on Monday, Nov., 8, following three hours of jury deliberations, according to the United States Attorney for the Northern District of Iowa.
The couple had formerly owned the Ox Yoke Innterstate in the Amana Colonies before running into financial trouble with a convenience store business that later closed. They had been indicted by a federal grand jury in Florida, where they had moved and filed their bankruptcy case to take advantage of the state’s more liberal bankruptcy filing laws.
Evidence presented at trial indicated the couple protected from creditors before their bankruptcy filing through sham sales to relatives with understandings that they would reacquire the assets after their bankruptcy protection was granted.
Among the assets were a vehicle, boats, jewelry, stocks and other investments worth about $380,000.
The Schuerers were released on bond pending sentencing by United States District Court Judge Casey Rogers at a date to be set later. The maximum possible sentence for the offenses would be 30 years in prison, a fine of $500,000, and six years supervised release.
The case was investigated by the Federal Bureau of Investigation with help from the Office of United States Bankruptcy Trustee in the northern districts of Iowa and Florida. It was prosecuted through efforts of the Bankruptcy Fraud Task Force of the Northern District of Iowa.
The federal government plans to seek restitution for the Schuerers’ creditors at sentencing, according to a prepared statement released by United States Attorney Stephanie Rose.
CEDAR RAPIDS, Iowa - Gerald and Fay Schuerer of Amana were convicted of defrauding bankruptcy creditors out of more than $350,000 in property this week following a six-day trial in Pensacola, Fla.
Gerald Schuerer, 60, and Fay Schuerer, 58, were convicted of mail fraud and bankruptcy fraud on Monday, Nov., 8, following three hours of jury deliberations, according to the United States Attorney for the Northern District of Iowa.
The couple had formerly owned the Ox Yoke Innterstate in the Amana Colonies before running into financial trouble with a convenience store business that later closed. They had been indicted by a federal grand jury in Florida, where they had moved and filed their bankruptcy case to take advantage of the state’s more liberal bankruptcy filing laws.
Evidence presented at trial indicated the couple protected from creditors before their bankruptcy filing through sham sales to relatives with understandings that they would reacquire the assets after their bankruptcy protection was granted.
Among the assets were a vehicle, boats, jewelry, stocks and other investments worth about $380,000.
The Schuerers were released on bond pending sentencing by United States District Court Judge Casey Rogers at a date to be set later. The maximum possible sentence for the offenses would be 30 years in prison, a fine of $500,000, and six years supervised release.
The case was investigated by the Federal Bureau of Investigation with help from the Office of United States Bankruptcy Trustee in the northern districts of Iowa and Florida. It was prosecuted through efforts of the Bankruptcy Fraud Task Force of the Northern District of Iowa.
The federal government plans to seek restitution for the Schuerers’ creditors at sentencing, according to a prepared statement released by United States Attorney Stephanie Rose.
Thursday, August 19, 2010
Honesty in Bankruptcy is Best Policy
Several courts have stated that the bankruptcy laws are meant to give an honest debtor a fresh start, but not a head start. It is important to understand that the bankruptcy laws in this country are very forgiving, but these laws require the debtor to make reasonable efforts to repay creditors. The debtor is obligated to disclose all income and assets to the bankruptcy court. From these disclosures the bankruptcy trustee, creditors, and the court are able to determine what, if anything, the debtor can afford to repay.
The debtor has a great responsibility to truthfully disclose income and assets to the best of his or her ability. The federal bankruptcy laws will relieve the honest debtor from the stress of overwhelming debt. However, the dishonest debtor can face serious consequences.
One consequence of failing to disclose income or assets is that the debtor may be denied a discharge. Section 727 of the Bankruptcy Code is designed to protect the integrity of the process and permits the court to dismiss the debtor’s case for dishonest acts like lying on the bankruptcy schedules, hiding assets, failing to maintain financial records, refusing to turn over records, and refusing to cooperate with the trustee. The court may deny the dishonest or uncooperative debtor a discharge under Section 727 and the debtor will remain liable for all debts. To make matters worse, any assets turned over during the case will still be administered by the bankruptcy trustee and the debtor may lose non-exempt property to creditors.
Another more serious consequence for the dishonest debtor is the prospect of being charged with bankruptcy fraud. The Federal Bureau of Investigation ordinarily investigates allegations of bankruptcy fraud, but other federal agencies may become involved including the Internal Revenue Service Criminal Investigation’s Bankruptcy Fraud Program. Most bankruptcy fraud is first discovered by the bankruptcy trustee, and is often the result of whistle blowing from neighbors, creditors, or ex-souses. The Department of Justice Trustee Program encourages individuals to report bankruptcy fraud.
In bankruptcy, honesty is the best policy. For an individual who needs relief from overwhelming debt, bankruptcy is a tremendous tool that gives real results. The promise of bankruptcy is a fresh start, but not a head start. Debtors who are dishonest during the bankruptcy process can lose the benefits of a bankruptcy discharge, and may be criminally charged with one or more federal crimes. If you need help with your debt problem, speak honestly and frankly with an experienced attorney and learn how the powerful federal bankruptcy laws can help you.
The debtor has a great responsibility to truthfully disclose income and assets to the best of his or her ability. The federal bankruptcy laws will relieve the honest debtor from the stress of overwhelming debt. However, the dishonest debtor can face serious consequences.
One consequence of failing to disclose income or assets is that the debtor may be denied a discharge. Section 727 of the Bankruptcy Code is designed to protect the integrity of the process and permits the court to dismiss the debtor’s case for dishonest acts like lying on the bankruptcy schedules, hiding assets, failing to maintain financial records, refusing to turn over records, and refusing to cooperate with the trustee. The court may deny the dishonest or uncooperative debtor a discharge under Section 727 and the debtor will remain liable for all debts. To make matters worse, any assets turned over during the case will still be administered by the bankruptcy trustee and the debtor may lose non-exempt property to creditors.
Another more serious consequence for the dishonest debtor is the prospect of being charged with bankruptcy fraud. The Federal Bureau of Investigation ordinarily investigates allegations of bankruptcy fraud, but other federal agencies may become involved including the Internal Revenue Service Criminal Investigation’s Bankruptcy Fraud Program. Most bankruptcy fraud is first discovered by the bankruptcy trustee, and is often the result of whistle blowing from neighbors, creditors, or ex-souses. The Department of Justice Trustee Program encourages individuals to report bankruptcy fraud.
In bankruptcy, honesty is the best policy. For an individual who needs relief from overwhelming debt, bankruptcy is a tremendous tool that gives real results. The promise of bankruptcy is a fresh start, but not a head start. Debtors who are dishonest during the bankruptcy process can lose the benefits of a bankruptcy discharge, and may be criminally charged with one or more federal crimes. If you need help with your debt problem, speak honestly and frankly with an experienced attorney and learn how the powerful federal bankruptcy laws can help you.
Posted by
Erich M. Niederlehner - Bankruptcy Lawyer in Mobile, Pensacola, Fairhope and Fort Walton Beach
at
9:10 AM
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Tuesday, July 27, 2010
Five Common Bankruptcy Mistakes to Avoid
The federal bankruptcy laws promise a fresh financial start for the honest but unfortunate debtor. Bankruptcy balances the interests of the debtor to obtain his fresh start and the interests of the creditor to see that the debtor pays whatever he can afford. In some circumstances the debtor can complicate his bankruptcy case before he files.
Mistake #1: Paying an Insider Creditor
The bankruptcy laws attempt to ensure that all creditors receive fair treatment during the bankruptcy process. One concern is that the debtor will pay loans to family or friends before filing bankruptcy, and therefore deprive other creditors from receiving payment. Family, friends, business partners, and other creditors who have close relationships with the debtor are called “insider creditors” and transfers to insider creditors can be avoided by the bankruptcy trustee if the transfer occurred within one year before the bankruptcy filing. For instance, if you gave your mother $1,000 from your income tax refund as payment for a debt, and then filed bankruptcy two months later, the bankruptcy trustee can sue your mother to recover the $1,000. To make matters worse, often the debtor could have protected the cash money during the bankruptcy and paid the debt without difficulty after the case was filed.
Mistake #2: Incurring Debt After Deciding to File
Some people decide to charge up credit cards or take payday loans just before filing bankruptcy. If you have decided to file bankruptcy, do not incur additional debt. Taking loans with no intention to repay the creditor could be fraud. It could also be a criminal act.
Mistake #3: Transferring Property
Some people fear that they will lose property when they file bankruptcy. Some will give away or sell property to avoid losing it. In most cases your bankruptcy attorney can protect your property and you will not lose anything. However, once you have transferred an item it is no longer eligible for legal protections. For instance, a car worth $2,000 is likely entirely protected from turnover during your bankruptcy. If you transfer title of this vehicle to your brother before the bankruptcy, the trustee can avoid the transfer, take the car, and sell it to pay your creditors.
Mistake #4: Cashing out Retirement
Most retirement accounts are entirely protected during bankruptcy. Unfortunately, some people are unaware of these broad protections and cash out their retirement savings out of fear that it will be taken during the bankruptcy. Sometimes the money is spent to pay off loans which can create preference issues. In other cases the debtor converts an exempt asset (retirement funds) to a non-exempt asset (e.g. a paid off car).
Mistake #5: Failing to Be Honest
This is the worst mistake of all because the bankruptcy laws do not protect a dishonest debtor. Failure to truthfully list all of your assets, debts, income and expenses is grounds for dismissal of your case, or you may have to answer allegations of bankruptcy fraud (a federal crime).
If you are experiencing financial difficulty and are considering bankruptcy, discuss your case with an experienced bankruptcy attorney. Your bankruptcy attorney can advise you on the best actions to take before bankruptcy and how to avoid common mistakes. Use the federal bankruptcy laws and protect your property.
Mistake #1: Paying an Insider Creditor
The bankruptcy laws attempt to ensure that all creditors receive fair treatment during the bankruptcy process. One concern is that the debtor will pay loans to family or friends before filing bankruptcy, and therefore deprive other creditors from receiving payment. Family, friends, business partners, and other creditors who have close relationships with the debtor are called “insider creditors” and transfers to insider creditors can be avoided by the bankruptcy trustee if the transfer occurred within one year before the bankruptcy filing. For instance, if you gave your mother $1,000 from your income tax refund as payment for a debt, and then filed bankruptcy two months later, the bankruptcy trustee can sue your mother to recover the $1,000. To make matters worse, often the debtor could have protected the cash money during the bankruptcy and paid the debt without difficulty after the case was filed.
Mistake #2: Incurring Debt After Deciding to File
Some people decide to charge up credit cards or take payday loans just before filing bankruptcy. If you have decided to file bankruptcy, do not incur additional debt. Taking loans with no intention to repay the creditor could be fraud. It could also be a criminal act.
Mistake #3: Transferring Property
Some people fear that they will lose property when they file bankruptcy. Some will give away or sell property to avoid losing it. In most cases your bankruptcy attorney can protect your property and you will not lose anything. However, once you have transferred an item it is no longer eligible for legal protections. For instance, a car worth $2,000 is likely entirely protected from turnover during your bankruptcy. If you transfer title of this vehicle to your brother before the bankruptcy, the trustee can avoid the transfer, take the car, and sell it to pay your creditors.
Mistake #4: Cashing out Retirement
Most retirement accounts are entirely protected during bankruptcy. Unfortunately, some people are unaware of these broad protections and cash out their retirement savings out of fear that it will be taken during the bankruptcy. Sometimes the money is spent to pay off loans which can create preference issues. In other cases the debtor converts an exempt asset (retirement funds) to a non-exempt asset (e.g. a paid off car).
Mistake #5: Failing to Be Honest
This is the worst mistake of all because the bankruptcy laws do not protect a dishonest debtor. Failure to truthfully list all of your assets, debts, income and expenses is grounds for dismissal of your case, or you may have to answer allegations of bankruptcy fraud (a federal crime).
If you are experiencing financial difficulty and are considering bankruptcy, discuss your case with an experienced bankruptcy attorney. Your bankruptcy attorney can advise you on the best actions to take before bankruptcy and how to avoid common mistakes. Use the federal bankruptcy laws and protect your property.
Posted by
Erich M. Niederlehner - Bankruptcy Lawyer in Mobile, Pensacola, Fairhope and Fort Walton Beach
at
9:33 AM
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