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.
See Related Blog Posts:

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more