Bankruptcy Fraud in Illinois: A Serious Crime

When you’re in serious debt and make the decision to file for bankruptcy, it’s essential that you report all of your assets.  Last summer, we told you about the dangers of failing to report assets during a bankruptcy proceeding.  Now, a recent press release from the Federal Bureau of Investigation (FBI) reported that an Illinois couple pleaded guilty to bankruptcy fraud early last month.
Bankruptcy fraud carries serious criminal penalties and fines.  In fact, each count of bankruptcy fraud, according to the FBI, is “punishable by not more than five years’ imprisonment and/or a $250,000 fine.”  When you make the decision to file for consumer bankruptcy, it is extremely important to have an experienced Chicago bankruptcy attorney who can help you with this process.  Bankruptcy law can be complicated and confusing, but one of the dedicated bankruptcy lawyers at the Emerson Law Firm can help.
Details of the Bankruptcy Fraud in Eldorado, IL
On June 5, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Lucy J. McGill and her husband, Gary G. McGill, pleaded guilty to bankruptcy fraud.  How did they commit this serious offense?  According to the U.S. Attorney, Lucy McGill, 62, pleaded guilty to multiple crimes related to her bankruptcy proceeding, including: “two counts of making false statements under penalty of perjury,” and “three counts of making false statements under oath,” and “one count of falsifying records.”  Gary McGill, 69, pleaded guilty to similar crimes, including “two counts of making false statements under penalty of perjury” and “two counts of making false statements under oath in a bankruptcy case.”
The charges against the couple, to which they pleaded guilty, might sound complicated.  While the facts of their bankruptcy proceeding involved certain complicated issues, the McGills’ crimes are relatively straightforward.  In short, they lied about their assets during their bankruptcy proceeding.
As the FBI press release explains, “federal law requires that debtors who file for bankruptcy must disclose all of their assets.”  And that’s not all.  Under federal law, debtors also must disclose “certain financial transactions that they conducted prior to filing bankruptcy.”  By disclosing detailed and accurate information about their assets and financial transactions, debtors who file for bankruptcy can ensure that “all available funds can be collected to pay the creditors as much as possible on the amounts they are owed.”
What did the McGills fail to disclose?  The husband and wife lied about assets on their Statement of Financial Affairs, including $22,000 in lawsuit settlements that had been paid to Gary, along with gifts of nearly $7,000 they had given to their son in cash.  Lucy also admitted to creating fake receipts for some of the funds in question.  In addition to lying on their Statement of Financial Affairs, the McGills “continued to lie about these topics when they gave sworn testimony” at their bankruptcy proceeding.
Bankruptcy fraud is a very serious crime, and the McGills now await sentencing.  If you are planning to file for personal bankruptcy, it’s essential to discuss your case with an Oak Park bankruptcy lawyer.  Contact our office today to learn about our services.
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