Daphne Woman Sentenced To Federal Prison In Falsification Of Bankruptcy Documents
United States Attorney Kenyen Brown announces that Teresa Weinacker of Daphne, Alabama today was sentenced to five months in Federal prison followed by five months home confinement and three years supervised release after she pled guilty to felony falsification of a Statement of Financial Affairs she caused to be filed in the bankruptcy case of her corporation, Xena Express, Inc. doing business as Pet Friendly, Inc. Weinacker was also ordered to pay restitution of $54,961.57 and to pay a $100 special assessment.
The charges concerned a “bust out scheme” of Pet Friendly, Inc., the business Weinacker controlled. This is a type of fraud where, just before filing bankruptcy, a person who controls a corporation transfers or conceals a corporation’s property and hides that transfer from the bankruptcy court. Property that should go to pay debts is instead taken by the controlling person. Weinacker was the president and controlling shareholder of Xena Express, Inc., which filed bankruptcy in October, 2009. Shortly before the bankruptcy filing, Weinacker opened a new bank account under her own name, doing business as Pet Friendly, Inc. She then, as president of Xena Express, Inc., faxed instructions to her major customer, Wal-Mart Stores, Inc. in Arkansas to wire transfer funds due Xena Express, Inc. to the bank account she had opened in her own name Weinacker caused Wal-Mart to send almost Fifty-five thousand dollars that should have gone to the bankrupt corporation for businesses debts to instead be sent to her own account without the knowledge or approval of the Bankruptcy Court.. Weinacker answered a question on the bankruptcy Statement of Financial Affairs that asked about transfers of corporate property by stating “NONE”, when she knew she had caused the obligation due from Wal-Mart to be paid to her own account, instead of the corporate account.
The case was investigated by agents of the Mobile Office of the Federal Bureau of Investigation The case was be prosecuted by Assistant U.S. Attorney Charles Baer on behalf of the United States Attorney’s Office for the Southern District of Alabama.
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