Ocean County, N.J., Woman Admits Bankruptcy Fraud
TRENTON, N.J. – An Ocean County, N.J., woman today admitted concealing from a bankruptcy trustee profits she had made on a Ponzi scheme investment, U.S. Attorney Paul J. Fishman announced.
Marjorie Parise, 51, of Manahawkin, N.J., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to one count of bankruptcy fraud.
According to documents filed in this case and statements made in court:
In 2003, Parise and her husband invested approximately $115,750 with a company known as Global Trading Investments, LLC, and received in return, profits totaling $429,154.91. However, the owners of Global Trading were operating a Ponzi scheme and the profits that Parise received were actually the investments of other individuals. Global Trading subsequently filed for Chapter Seven bankruptcy protection.
On Aug. 24, 2006, a judgment was entered against Parise requiring her to return the profits she had made from her investments in the scheme. However, Parise took numerous steps to fraudulently conceal a significant amount of funds and assets from the Trustee, including making false statements and omissions during a deposition in the bankruptcy proceeding.
Parise also took other steps to avoid detection and to keep assets from being seized as part of this proceeding. From Sept. 14, 2006, through Dec. 8, 2006, she withdrew at least $455,850 in cash from the bank accounts which had not been disclosed to the trustee. Parise made 67 currency withdrawals, none of which exceeded the $10,000 threshold for the filing of Currency Transaction Reports. In November 2006, Parise transferred ownership of her residence from her name only to the names of both her and her husband, and increased the home equity line of credit on the home.
On July 7, 2008, Parise filed for individual Chapter Seven bankruptcy protection. On her bankruptcy petition, she fraudulently failed to report millions of dollars in real estate holdings plus hundreds of thousands of personal assets.
The count of bankruptcy fraud to which Parise pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for May 10, 2013.
U.S. Attorney Fishman credited special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen in Newark for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko, of the U.S. Attorney’s Office in Trenton.
Defense counsel: Michael Pinsky Esq., Haddon Township, N.J.