FORMER COEUR D’ALENE COUPLE SENTENCED FOR BANKRUPTCY FRAUD

Craig Alan Burgess, 41, and Nancy G. Burgess, 46, were sentenced on September 29 by U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene. Craig Burgess was sentenced to 12 months in federal prison for bankruptcy fraud, followed by 3 years of supervised release. Nancy Burgess was sentenced to 48 months in federal prison for making false statements to a bank, followed by 3 years of supervised release. Both were ordered to jointly pay $207,242.58 in restitution.

Craig and Nancy Burgess entered guilty pleas in federal court in December 2007. Craig Burgess admitted that he concealed $22,000 in assets in a bankruptcy case. Nancy Burgess admitted to making a false statement to a bank in order to get a business loan.

The Burgesses owned and operated Red Rooster Trading, a retail kitchen supply store, and Little Seattle, a coffee shop, under the fictitious names Gerald W. May and Lauren E. May. Both businesses were located in Coeur d’Alene.

In February 2001, Craig Burgess, using the fictitious name Gerald May, filed for chapter 7 bankruptcy. The Little Seattle coffee shop became property of the bankruptcy estate. In October 2001, unbeknownst to the bankruptcy estate, Burgess sold Little Seattle for a cash price of $22,000. He then left the state without advising the bankruptcy estate of the sale or turning over the proceeds.

Prior to the bankruptcy, in March 1999, Nancy Burgess used the fictitious name Lauren May and a fictitious Social Security number to get an $80,000 loan from Washington Trust Bank.

The U.S. Attorney praised the efforts of the United States Secret Service which investigated the case.