Creston Man Pleads Guilty To Bankruptcy Fraud Scheme

United States Attorney Deborah R. Gilg announced that on March 19, 2013, Ross Boydston, age 57 of Creston, Nebraska, pleaded guilty to an Information charging him with bankruptcy fraud.  Sentencing has been set for June 24, 2013, before United States District Court Judge John M. Gerrard.  The maximum punishment for the offense is up to five years imprisonment and/or a $250,000.00 fine with any term of imprisonment to be followed by a term of supervised release of up to three years.

According to the Information, Boydston knowingly devised a scheme to defraud American Mortgage Company, (AMC), and, as part of the scheme, subsequently filed a Chapter 12 bankruptcy.  The Information alleges that it was part of the scheme to defraud that Boydston sold livestock which had been pledged as collateral to American Mortgage Company without notifying AMC of the sales and without remitting the proceeds of the sales to AMC.  It was a further part of the scheme to defraud that Boydston made material false statements, representations and omissions in his Chapter 12 bankruptcy case in an attempt to conceal the fact that he had transferred and sold the collateral without remitting the proceeds.  Specifically, the Information alleges Boydston’s bankruptcy schedules failed to list all of the transfers and sales of pledged livestock collateral within the two years preceding the bankruptcy filing.  The Information further alleges that, in order to further conceal the transfers and sales of livestock, Boydston attended the first meeting of creditors in his bankruptcy case and falsely testified that there had not been any sales of livestock in which the proceeds had not been turned over to the lien of AMC.  Boydston admitted these allegations as part of his plea agreement with the United States.

“Concealing sales and transfers of assets in a bankruptcy proceeding is a crime that threatens the integrity of the bankruptcy process and public confidence in that process,” stated Nancy J. Gargula, United States Trustee for Nebraska, Missouri, and Arkansas (Region 13).  “We are grateful to all of our law enforcement partners in this case, and, in particular, to U.S. Attorney Deborah Gilg for her commitment to pursuing those who commit bankruptcy fraud.” Region 13 of the U.S. Trustee Program is headquartered in Kansas City, with additional offices in Omaha, St. Louis, and Little Rock.  The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.

The United States Trustee’s Office and members of the Nebraska Bankruptcy Fraud Working Group assisted the United States Attorney’s Office with the investigation of this matter.