LOCAL BUSINESSMAN CHARGED WITH BANKRUPTCY FRAUD

A Meridian man, Reed J. Bowen, Jr., was indicted by a Boise federal grand jury yesterday for three counts of bankruptcy fraud stemming from a bankruptcy case he filed in February 2004. The indictment alleges that Bowen committed a scheme to defraud his creditors and the bankruptcy trustee in order to discharge over $3 million in unsecured debt so he could finalize the purchase of a Meridian home, the full interest in which he concealed in bankruptcy documents. The indictment further alleges that Bowen concealed interests he held in business entities and that Bowen made false statements in his bankruptcy documents about his managerial roles in several entities.

The defendant will make his initial appearance in federal court in Boise on February 23. The maximum statutory penalty for bankruptcy fraud is five years in prison and a $250,000 fine. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

U.S. Attorney Tom Moss said, “Though financial times are tough, business trust and honesty are still the bedrock on which our economy is based. Fraud in bankruptcy will be prosecuted.”

The case was investigated by the Internal Revenue Service, Criminal Investigation Division, in cooperation with the United States Trustee Program.

An indictment contains only allegations against an individual and, as with all defendants, the defendant is presumed innocent unless and until proven guilty.