Bankruptcy Fraud

Interesting bankruptcy fraud case

bankruptcy fraud slug
bankruptcy fraud slug

in my hometown, Detroit.

I frequently blog about telling the truth

to your lawyer, and that you are signing

your bankruptcy papers under penalty of perjury.

Now, these are allegations at this point, so the former Rosa Parks attorney who filed bankruptcy may not be the same form of life as in the photo.

But, if true, there is a striking similarity

Where Is the Stuff?

So this guy filed his own bankruptcy, and made a common mistake, co-mingling.

If you run a business, profit or non-profit, you HAVE to keep the money separate.

You MUST keep separate books.

It may seem all the same to you, but you are dealing with different legal entities, and when one of those entities files bankruptcy, you better be able to show which assets and what property belong to it, and not the other non-filing entity.

Reed, however, shielded assets from creditors by commingling them with the foundation’s and treated the nonprofit like his “personal piggy bank,” U.S. District Judge Matthew Leitman wrote in a court filing.

Well, how much stuff are we talking about?

Days after the inspection of Reed’s home, he was ordered to preserve the items. In December 2015, he was ordered to turn over the property to the bankruptcy trustee.

Findling’s team entered Reed’s house on July 10, 2017, and learned more than 130 items were missing, according to court records.

What Can Be Done?

Bankruptcy judges have the power to jail for contempt, that is, for not following their orders.

Well, sort of, too complicated to go into detail.

Rosa Parks’ lawyer should be jailed until the items are found, a bankruptcy lawyer claims.

The allegation emerged in the bankruptcy case of prominent Detroit attorney Gregory Reed, a case that features claims about mansions with secret rooms, crates crammed full of historical objects and missing artifacts. The missing items includes iron slave shackles, an early draft of a Parks book, a century-old book signed by educator Booker T. Washington and gold records awarded to Motown artists including The Marvelettes.

Other Remedies?

The current motions have to do with the bankruptcy trustee trying to get the assets of the bankruptcy estate,

which is his job, and sworn duty.

However, if the debtor, the attorney who filed, lied on his bankruptcy papers, or under oath in court, he can be federally prosecuted and imprisoned if convicted.

Also, there could be state law criminal charges for stealing/embezzling/misappropriating property.

Honesty is the best policy.

Bankruptcy Fraud
Article Name
Bankruptcy Fraud
Was Bankruptcy fraud committed by former Rosa Parks attorney in his bankruptcy filing? That is what the trustee says.
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