Bankruptcy Fraud Resource Center | Wayne D. Holly, P.C.

City Payroll Clerk Charged with Filing Fraudulent Document in Chapter 13 Case

As reported in the news, a city payroll clerk was indicted in the Southern District of Alabama on charges that she falsified city records and altered check stubs to make it falsely appear that payroll deductions were being made to properly fund her chapter 13 plan payments, according to the indictment.  Sheila Milner Jackson was charged with filing a fraudulent document in a bankruptcy proceeding and 14 counts of mail fraud for each check mailed from the city to the chapter 13 trustee.

Connecticut Man Sentenced In Identify Theft and Bankruptcy Fraud Scheme

A Connecticut man was sentenced to two years in prison for his involvement in a bankruptcy fraud scheme in which he stole the identity of a victim, incurred more than $200,000 in loans and lines of credit in her name, and then filed a bankruptcy petition to discharge the debt.  The defendant, Joel C. Riley, was also sentenced to make restitution in the amount of $211,142 and to a three year term of supervised release. 

According to the press release from the U.S. Attorney's Office, Riley met with an attorney claiming to have power of attorney for the victim, that she was ill, and that he wanted to file a bankruptcy petition on her behalf.  The attorney required an in-person meeting with the victim to confirm her identity.  Thereafter, Riley brought an imposter to counsel's office who presented the victim's identification as her own, and they completed the bankruptcy petition.  RIley subsequently apologized for his conduct.  He was charged with identify theft, bankruptcy fraud, and conspiracy to commit each of the substantive offenses.  He pled guilty to one count of bankruptcy fraud in April, 2019.

Debtor Pleads Guilty to Failing to Disclose Property Transfer - Sentenced to Weekends in Prison

Daniel Miner, Jr. was sentenced this week to six months of weekends in prison following his guilty plea to bankruptcy fraud.  Miner filed a chapter 13 bankruptcy petition and failed to disclose in the Statement of Financial Affairs that he transferred a parcel of real estate worth approximately $65,000 ten months before the filing.  At the meeting of creditors, Miner admitted transferring the property only after the trustee, who had discovered it in a public records search, confronted him about it.  Later, the chapter 13 case was converted to a case under chapter 7 and an order denying Miner's discharge was entered following a trial.  In addition jail time, Miner was sentenced to a three year term of supervised release, a $5,500 fine, and restitution in the amount of $5,242.   

Real Estate Agent Sentenced to 6 Years Imprisonment in Scheme to Conceal Assets

Arvel "Ray" Henderson II, a real estate agent whose convictions we reported here, was sentenced today to six years of imprisonment and ordered to pay $37,589 in restitution for stealing public funds, concealing assets in his chapter 7 case, and bankruptcy fraud.  The sentence imposed will run concurrently to 30 month sentence previously imposed for money laundering.

Mortgage Rescue Scheme Ends in Guilty Plea

Aston S. Wood engaged in a mortgage rescue scheme between January 2014 and July 2019 in which he solicited homeowners in foreclosure, according to this press release.  He told them that he would get their mortgages refinanced or reinstated and they could keep their homes.  Wood, who operated ASC Financial LLC and Maywood Capital LLC, had his customers make their monthly mortgage payments directly to him but instead of forwarding the money to the lenders, Wood spent it on personal needs and travel.  When customers begin to lose their homes, Wood told many to file bankruptcy to halt further proceedings and not respond to any requests from the bankruptcy court. The delay only allowed Wood to postpone detection and continue to receive their monthly mortgage payments. 

Wood subsequently filed bankruptcy, and after an investigation, the trustee filed an adversary proceeding against Wood alleging that he took clients’ money without performing the services he promised to extract their properties from foreclosure.  That complaint formed by the basis of the federal prosecution against Wood and resulted in his being indicted in September on six counts of wire fraud and single counts of mail and bankruptcy fraud and criminal contempt.

In exchange for his guilty pleas to mail and bankruptcy fraud Monday, the government agreed to dismiss the wire fraud and criminal contempt charges at sentencing.  Sentencing is scheduled for March 17.