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Recent News and Articles on the Keywords: truth + consequences + tell  Related to the article below (Last Update: 8/4/2008)

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Tell the truth or face the consequences

Either tell the truth or face the consequences
You can help stamp out bankruptcy fraud by contacting a new e-mail "hot line."

Report suspected bankruptcy fraud to the U.S. Trustees Program by e-mailing USTP.Bankruptcy.Fraud@usdoj.gov.

The hot line comes on the heels of a nationwide crime sweep in October. In "Operation Truth or Consequences," federal prosecutors filed criminal charges last month against 78 people in 69 separate prosecutions in 36 judicial districts on a quite a number of federal bankruptcy fraud and related counts.

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"A bankruptcy filing is often the last step of a series of criminal acts, including mortgage fraud, bank fraud, mail fraud, money laundering and government program fraud," explained Deputy Attorney General Paul J. McNulty in the Department of Justice press release.

"Bankruptcy fraud is often the tip of the criminal iceberg, and that makes these prosecutions so important."

According prosecutors, their operation included:

• Charges filed against nine lawyers, two bankruptcy petition preparers and one former law enforcement officer.
• Alleged concealment of more than $3 million in assets.
• Use of false Social Security numbers and false identities.
• Submission of forged documents and use of false statements.
• Defrauding of individuals whose homes were in foreclosure.

Fraudulent receipt of government loans and benefits.
These latest actions have sparked several reports about this type of bamboozlement.

In the Midwest, the mayor of a village near Chicago has seen his nine-year career in office end with a guilty verdict as a result of debtor fraud. The Illinois village's name? Justice.

In a story in the Chicago Tribune, "Justice mayor guilty of bankruptcy fraud," Matthew Walberg wrote that a federal jury found Melvin Van Allen guilty of 32 counts of bankruptcy fraud and illegal cash structuring. He had filed for bankruptcy in 2004 to wriggle out of $80,000 in credit card debt.

Walberg explains that prosecutors got the jury to believe that Van Allen lied to his bankruptcy attorney and a bankruptcy trustee when he told them that he didn't own a home his family had lived in for the past 20 years. While filing, he also either left out or misrepresented his available cash.