According to Bethesda-ChevyChasePatch, a Bethesda woman was sentenced last month to 27 months in prison for concealing assets during her Chapter 7 bankruptcy case. Diana J. Stout, 56, was sentenced to 27 months in prison by U.S. District Judge J. Frederick Motz for making a false statement and concealing assets in a bankruptcy case, according to Patch.
Stout filed for Chapter 7 bankruptcy in 2010 to liquidate her debts and distribute the proceeds to her creditors. However, during her filing, she failed to disclose that she transferred a property to her daughter in South Carolina for $1 in 2010. According to the trustee working Stout’s case, the property transfer was done to defraud creditors and Stout did not receive reasonably equivalent value for the transfer.
Stout falsely claimed that her daughter had paid her $75,000 for her interest in the property after the transfer was discovered. “Stout knew that the statements were false and she admitted that she made them with the intent to defeat [the bankruptcy] trustee’s legal action and to defraud her creditors,” a statement from the U.S. Department of Justice’s (DOJ) said.
Bankruptcy fraud is a crime that can be punishable with prison sentences— it is important to be as upfront about your assets as possible. Trustees and creditors can question your disclosures; in Hyde’s case, the FBI was investigating his claim.
If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation. We can offer you the best solution for whatever your debt issues may be.
Law Firm of Kevin D. Judd
Judd’s Judgment: Not disclosing assets during a bankruptcy filing is a punishable crime, often leading to fraud charges.