BANKRUPTCY LAWYER SENTENCED TO 15 MONTHS FOR BANKRUPTCY FRAUD

A Coeur d’Alene bankruptcy attorney was sentenced yesterday in Coeur d’Alene by Chief U.S. District Judge B. Lynn Winmill to 15 months in federal prison for bankruptcy fraud. Craig D. Odegaard, a 49-year-old lawyer in Coeur d’Alene who had filed more than 600 bankruptcy cases, admitted and pleaded guilty to bankruptcy fraud for failing to declare personal injury contingency fee arrangements pending at the time he filed for bankruptcy in October 2004. The concealed contingency fee contracts netted Odegaard $39,989 just prior to his receiving a discharge of debts totaling approximately $155,000. Shortly thereafter, Odegaard purchased a new Chevrolet Corvette automobile, and the bankruptcy trustee discovered the concealment. Odegaard subsequently repaid his creditors. By his failure to declare his assets accurately, the defendant concealed $39,989, which should have been part of the bankruptcy estate and used to pay his creditors.

Odegaard was sentenced to a term of 15 months in federal prison. After being released from prison, he will served a term of two years on supervised release. Odegaard was also ordered to pay a fine of $2,500 and a special assessment of $100. Restitution was not an issue because after the discovery of the offense, arrangements were made to pay creditors in full. In pronouncing sentence, Judge Winmill noted that a substantial sentence is warranted in this case in order to protect the integrity of the bankruptcy process and respect for the judicial process.

According to U.S. Attorney Tom Moss, the sentence was appropriate because lawyers have a special responsibility to protect the legal process to ensure public confidence in the legal system. Mr. Moss thanked the US Trustee, who was instrumental in prosecuting the case, and the Coeur d’Alene office of the FBI that investigated the case.