Bankruptcy fraud is bad.
Bankruptcy fraud by an attorney? Worse.
Well, I have been absent from the blog for the longest time ever, for me, swamped with Chapter 11 bankruptcy work.
Hey, I am not complaining!
So this particular North Carolina bankruptcy attorney, who shall remain nameless, hey, innocent until proven guilty, already was nailed for fraudulent scams involving over 200 pieces of real estate and $15 million in bogus loans.
While under house arrest, on those charges, which are on appeal, she filed bankruptcy.
Allegedly, she concealed almost $100,000 of rental income she received. She is charged with setting up fake email accounts to help her conceal income.
As I say to my clients, do you want to see the sunlight come up in chunks?
Then tell the truth!
You are under oath in a federal court, both when you sign the bankruptcy papers, and, when you appear for the 341 bankruptcy hearing.
The prosecutor’s take on the defendant’s behavior (from the linked to story): the prosecutor said Sprouse did not understand the severity of the circumstances and was in “la-la land.”
For my Spartan friends, former MSU head football coach, now pulled in by Arkansas after their last guy got in a motorcycle accident with an employee-girlfriend riding on the back, is facing bankruptcy over bad real estate investments.
That is the main kind we have had here in the US of A the last few years.
He was head man at Louisville before MSU made the call, and the now belly up investments were in Kentucky.
This line of his illustrates how so many, our country, the world, got into this mess.
From the USA today story linked to above: “It was a situation where we all made a little and said, ‘Well, that’s good. Let’s see if we can make a little more,’” he said. “At that point, the bank was willing to give away money. We got in over our head with land, and then the bubble burst and all this land value dropped and we couldn’t sustain it.”
John L. has been forthright about his situation, telling his new employer before signing his contract. I am sure he will stay that way, and disclose EVERYTHING fully and completely, on his bankruptcy schedules, and avoid the problems of the North Carolina attorney with the hidden income.