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Sonia Alburez was charged last week with four counts of bankruptcy fraud for allegedly filing fraudulent bankruptcy petitions in the Northern District of California.  According to the indictment, Alburez solicited homeowners who were delinquent in their mortgage payments and convinced them that her company, Community Home Saver Program, could prevent or delay foreclosure if the homeowners would transfer a fractional interest in their home to one of several fictitious entities and paid Alburez' fees.  She is accused of then filing fraudulent bankruptcy petitions listing the properties to trigger the automatic stay while she collected between $1,500 and $2,500 per month from the homeowners.
11 years 3 months ago
Sonia Alburez was charged last week with four counts of bankruptcy fraud for allegedly filing fraudulent bankruptcy petitions in the Northern District of California.  According to the indictment, Alburez solicited homeowners who were delinquent in their mortgage payments and convinced them that her company, Community Home Saver Program, could prevent or delay foreclosure if the homeowners would transfer a fractional interest in their home to one of several fictitious entities and paid Alburez' fees.  She is accused of then filing fraudulent bankruptcy petitions listing the properties to trigger the automatic stay while she collected between $1,500 and $2,500 per month from the homeowners.
11 years 3 months ago
According to this news report, Juan Tenorio and Charlene Tenorio each were sentenced to terms of probation after a jury in the District of Guam convicted them of concealing nearly $75,000 in income from their engineering firm during their 2002 bankruptcy case.  U.S. District Judge Francis Tydingco-Gatewood sentenced Juan to five years probation, a fine and restitution.  Charlene received a two-year term of probation, a fine and will be required to make restitution as well.  
11 years 3 months ago
According to this news report, Juan Tenorio and Charlene Tenorio each were sentenced to terms of probation after a jury in the District of Guam convicted them of concealing nearly $75,000 in income from their engineering firm during their 2002 bankruptcy case.  U.S. District Judge Francis Tydingco-Gatewood sentenced Juan to five years probation, a fine and restitution.  Charlene received a two-year term of probation, a fine and will be required to make restitution as well.  
11 years 3 months ago
According to this AP story, Italian financial police have said that they have arrested fashion designer Gai Mattiolo on charges of fraudulent bankruptcy in Rome.  The charges relate to Mattiolo's allegedly siphoning funds from his fashion house before filing bankruptcy. As described, the charge of fraudulent bankruptcy appears to be the more serious of two potentially applicable charges under Italian bankruptcy law.  Fraudulent bankruptcy carries a jail sentence of 3-10 years while the lesser "bankruptcy offence" provides for a sentence of six months to two years.
11 years 3 months ago
According to this AP story, Italian financial police have said that they have arrested fashion designer Gai Mattiolo on charges of fraudulent bankruptcy in Rome.  The charges relate to Mattiolo's allegedly siphoning funds from his fashion house before filing bankruptcy. As described, the charge of fraudulent bankruptcy appears to be the more serious of two potentially applicable charges under Italian bankruptcy law.  Fraudulent bankruptcy carries a jail sentence of 3-10 years while the lesser "bankruptcy offence" provides for a sentence of six months to two years.
11 years 3 months ago
William H. Spencer and Paul Boghosian were convicted on numerous federal charges relating to their fraudulent conduct in proposing a reorganization plan in the 2003 Hawaiian Airlines bankruptcy case.  Spencer was convicted following a two-week jury trial in Manhattan.  Boghosian pleaded guilty on October 29th. According to trial evidence, in connection with a bankruptcy court's consideration of two competing reorganization plans, one backed by Hawaiian Investment Partners Group LLC ("HIP Plan") and another jointly backed by the trustee and Hawaiian Holdings Inc., Spencer submitted false affidavits to the bankruptcy court claiming he could provide between $300 and $500 million to fund the HIP Plan through a trust that he controlled. He later submitted a supplemental affidavit, with attached purported bank records, in which he represented that the trust had agreed to commit $500 million to fund the HIP Plan, and that the money was being held in a Netherlands bank account.  Both defendants also gave false deposition testimony and used the false affidavits to solicit interested parties to support the HIP Plan. As it turned out, the funds did not exist and the documents submitted to the bankruptcy court were completely fraudulent. Sentencing is scheduled for January 30, 2009 
11 years 3 months ago
William H. Spencer and Paul Boghosian were convicted on numerous federal charges relating to their fraudulent conduct in proposing a reorganization plan in the 2003 Hawaiian Airlines bankruptcy case.  Spencer was convicted following a two-week jury trial in Manhattan.  Boghosian pleaded guilty on October 29th. According to trial evidence, in connection with a bankruptcy court's consideration of two competing reorganization plans, one backed by Hawaiian Investment Partners Group LLC ("HIP Plan") and another jointly backed by the trustee and Hawaiian Holdings Inc., Spencer submitted false affidavits to the bankruptcy court claiming he could provide between $300 and $500 million to fund the HIP Plan through a trust that he controlled. He later submitted a supplemental affidavit, with attached purported bank records, in which he represented that the trust had agreed to commit $500 million to fund the HIP Plan, and that the money was being held in a Netherlands bank account.  Both defendants also gave false deposition testimony and used the false affidavits to solicit interested parties to support the HIP Plan. As it turned out, the funds did not exist and the documents submitted to the bankruptcy court were completely fraudulent. Sentencing is scheduled for January 30, 2009 
11 years 3 months ago
The Deloitte Forensic Center and its Reorganization Services Group has produced the findings of a report that studied the correlation between bankruptcy and fraud.  The primary question examined was whether the increased scrutiny that follows a company's bankruptcy filing leads to more incidents of fraud claims as compared to companies that have not filed bankruptcy.    The report is available here. Among its findings: ·         Companies filing for bankruptcy protection are three times more likely than non-bankrupt companies to face enforcement action by the SEC relating to alleged financial statement fraud. ·         Companies that were issued financial statement fraud-related SEC Enforcement Releases were more than twice as likely to file bankruptcy protection as those not issued one. ·         Approximately one in seven financial statement fraud SEC Enforcement Releases issued to companies that filed for bankruptcy protection were issued prior to their bankruptcy filings. These situations may provide a warning signal of potential bankruptcy filing.
11 years 3 months ago
The Deloitte Forensic Center and its Reorganization Services Group has produced the findings of a report that studied the correlation between bankruptcy and fraud.  The primary question examined was whether the increased scrutiny that follows a company's bankruptcy filing leads to more incidents of fraud claims as compared to companies that have not filed bankruptcy.    The report is available here. Among its findings: ·         Companies filing for bankruptcy protection are three times more likely than non-bankrupt companies to face enforcement action by the SEC relating to alleged financial statement fraud. ·         Companies that were issued financial statement fraud-related SEC Enforcement Releases were more than twice as likely to file bankruptcy protection as those not issued one. ·         Approximately one in seven financial statement fraud SEC Enforcement Releases issued to companies that filed for bankruptcy protection were issued prior to their bankruptcy filings. These situations may provide a warning signal of potential bankruptcy filing.
11 years 3 months ago
Four defendants in the Southern District of West Virginia have been charged in separate cases with various bankruptcy crimes in a small fraud sweep that U.S. Attorney Charles T. Miller hopes will "serve as a warning to those who would abuse the [bankruptcy] system." Victoria Caudill was charged with concealing assets (18 U.S.C. 152(1)), making a false declaration (18 U.S.C. 152(3)) and devising a bankruptcy fraud scheme (157(3)) for allegedly transferring a $60,000 workers' compensation settlement payment to a bank account not in her name and then failing to disclose the account in multiple filings in her bankruptcy case. Clinton Smith was indicted and charged with concealing assets (18 U.S.C. 152(1)), making a false declaration (18 U.S.C. 152(3)) and devising a bankruptcy fraud scheme (157(3)) for allegedly failing to disclose in his bankruptcy case his interest in an income stream from the sale of a 50 acre parcel of property formerly jointly owned with his then wife. Jennifer Longwell was charged by indictment with two counts of making a false oath (18 U.S.C. 152(2)) and one count of concealing assets (18 U.S.C. 152(1)) in her bankruptcy case for allegedly not disclosing the proceeds she received from the sale of two parcels of real estate and then giving false testimony at the meeting of creditors concerning the same transactions.
11 years 4 months ago
Four defendants in the Southern District of West Virginia have been charged in separate cases with various bankruptcy crimes in a small fraud sweep that U.S. Attorney Charles T. Miller hopes will "serve as a warning to those who would abuse the [bankruptcy] system." Victoria Caudill was charged with concealing assets (18 U.S.C. 152(1)), making a false declaration (18 U.S.C. 152(3)) and devising a bankruptcy fraud scheme (157(3)) for allegedly transferring a $60,000 workers' compensation settlement payment to a bank account not in her name and then failing to disclose the account in multiple filings in her bankruptcy case. Clinton Smith was indicted and charged with concealing assets (18 U.S.C. 152(1)), making a false declaration (18 U.S.C. 152(3)) and devising a bankruptcy fraud scheme (157(3)) for allegedly failing to disclose in his bankruptcy case his interest in an income stream from the sale of a 50 acre parcel of property formerly jointly owned with his then wife. Jennifer Longwell was charged by indictment with two counts of making a false oath (18 U.S.C. 152(2)) and one count of concealing assets (18 U.S.C. 152(1)) in her bankruptcy case for allegedly not disclosing the proceeds she received from the sale of two parcels of real estate and then giving false testimony at the meeting of creditors concerning the same transactions.
11 years 4 months ago
As expected, Joey Diekemper has reached a plea agreement with the government and pleaded guilty to conspiracy to commit bankruptcy fraud in Illinois bankruptcy fraud case with ties to a double homocide of two potential witnesses.  Diekemper entered a guilty plea on Wednesday before U.S. Magistrate Judge Clifford Proud.  Outside of court, Diekemper's attorney denied his client had any involvement with the deaths of neighbors who owned the property on which a tractor Diekemper was charged with concealing was allegedly stashed.  Sentencing is scheduled for March 9.  Diekemper's wife, who previously pleaded guilty to conspiring with her husband to conceal assets in their bankruptcy case, will be sentenced on the same date.
11 years 4 months ago
As expected, Joey Diekemper has reached a plea agreement with the government and pleaded guilty to conspiracy to commit bankruptcy fraud in Illinois bankruptcy fraud case with ties to a double homocide of two potential witnesses.  Diekemper entered a guilty plea on Wednesday before U.S. Magistrate Judge Clifford Proud.  Outside of court, Diekemper's attorney denied his client had any involvement with the deaths of neighbors who owned the property on which a tractor Diekemper was charged with concealing was allegedly stashed.  Sentencing is scheduled for March 9.  Diekemper's wife, who previously pleaded guilty to conspiring with her husband to conceal assets in their bankruptcy case, will be sentenced on the same date.
11 years 4 months ago
Several news outlets here and here are now reporting that Joseph Diekemper, whose wife's guilty plea to conspiracy to conceal assets in bankruptcy case we reported here, is due in court tomorrow for a change of plea hearing.  He is expected to plead guilty under a plea agreement with the government in a case of bankruptcy fraud that also has ties to a double homocide.  For details of the alleged connection and of the deaths of two potential witnesses in the bankruptcy criminal case, see our previous post here
11 years 4 months ago
Several news outlets here and here are now reporting that Joseph Diekemper, whose wife's guilty plea to conspiracy to conceal assets in bankruptcy case we reported here, is due in court tomorrow for a change of plea hearing.  He is expected to plead guilty under a plea agreement with the government in a case of bankruptcy fraud that also has ties to a double homocide.  For details of the alleged connection and of the deaths of two potential witnesses in the bankruptcy criminal case, see our previous post here
11 years 4 months ago
Margaret Diekemper pleaded guilty in the Southern District of Illinois to conspiring with her husband, Joseph "Joey" Diekemper, to conceal assets in their bankruptcy case.  Twenty-two other felony counts will be dismissed as part of plea bargain.  The couple was indicted in June on numerous bankruptcy felony counts inlcuding concealing assets in their multi-million dollar bankruptcy case.  Joseph is incarcerated while awaiting trial on the bankruptcy fraud charges pending against him because a judge revoked his bond for weapons violations. In a seperate investigation related to the same case, authorities are also investigating the deaths of two potential witnesses found shot to death on property where the couple allegedly hid a tractor they were charged with concealing.  According to news reports citing an FBI memo, the killings came only days after one of the victims approached the FBI about the tractor and told investigators that he was worried that Joseph would burn down his house.  Firefighters found the bodies while responding to a fire at the victims' home. Margaret is scheduled to be sentenced on February 9th.
11 years 4 months ago
Margaret Diekemper pleaded guilty in the Southern District of Illinois to conspiring with her husband, Joseph "Joey" Diekemper, to conceal assets in their bankruptcy case.  Twenty-two other felony counts will be dismissed as part of plea bargain.  The couple was indicted in June on numerous bankruptcy felony counts inlcuding concealing assets in their multi-million dollar bankruptcy case.  Joseph is incarcerated while awaiting trial on the bankruptcy fraud charges pending against him because a judge revoked his bond for weapons violations. In a seperate investigation related to the same case, authorities are also investigating the deaths of two potential witnesses found shot to death on property where the couple allegedly hid a tractor they were charged with concealing.  According to news reports citing an FBI memo, the killings came only days after one of the victims approached the FBI about the tractor and told investigators that he was worried that Joseph would burn down his house.  Firefighters found the bodies while responding to a fire at the victims' home. Margaret is scheduled to be sentenced on February 9th.
11 years 4 months ago
For those last 2 remaining readers left after all this time, E-Everything is going dark, fini, no mas. Even though these dark economic times should be the golden days of the modern bankruptcy era, the only thing that can truly counted on these days is change.I am not really certain what the procedure should be to close out a "blawg", but most of the established blawgs I read are all done by lawyers who are partners or owners of their respective practices. I am neither, and am leaving the nest for bigger and better things. While I hope to stay active in the bankruptcy courts, I have joined forces with a dear friend from law school who is the founding member of the Burris Law Firm in Eagle Pass, Texas. There, I will be joining Brian Burris in doing God's work to bring justice to the oppressed and relief to those in need. While that move opens many doors, it also closes a few, and this blawg happens to be one of them. With no heir apparent, E-Everything will be left, preserved in its current state until some e-archaeologist or some future summer intern with the American Bankruptcy Institute finds my posts in the hubris of the Internet, and sadly marvels at the blasphemies of a young lawyer whose ideas were "before their time."I estimate that I have well over 200 early morning and late evening hours invested in this project, mostly for naught.
11 years 4 months ago
For those last 2 remaining readers left after all this time, E-Everything is going dark, fini, no mas. Even though these dark economic times should be the golden days of the modern bankruptcy era, the only thing that can truly counted on these days is change.I am not really certain what the procedure should be to close out a "blawg", but most of the established blawgs I read are all done by lawyers who are partners or owners of their respective practices. I am neither, and am leaving the nest for bigger and better things. While I hope to stay active in the bankruptcy courts, I have joined forces with a dear friend from law school who is the founding member of the Burris Law Firm in Eagle Pass, Texas. There, I will be joining Brian Burris in doing God's work to bring justice to the oppressed and relief to those in need. While that move opens many doors, it also closes a few, and this blawg happens to be one of them. With no heir apparent, E-Everything will be left, preserved in its current state until some e-archaeologist or some future summer intern with the American Bankruptcy Institute finds my posts in the hubris of the Internet, and sadly marvels at the blasphemies of a young lawyer whose ideas were "before their time."I estimate that I have well over 200 early morning and late evening hours invested in this project, mostly for naught.
11 years 4 months ago