08-24-05 -- Hoang, Can V. et al. -- Guilty Pleas -- News Release

Father, Son and Daughter Admit to Running Up Over $200,000 In Fraudulent Credit Charges, then Declaring Bankruptcy

CAMDEN - Three members of an Egg Harbor family pleaded guilty today to charges that they fraudulently incurred more than $140,000 in credit card debt, and that the father and daughter sought to eliminate the debt by filing for bankruptcy, U.S. Attorney Christopher J. Christie announced.

Can V. Hoang, 66, along with his son Brandon Hoan Hoang, 33, and his daughter Leyna Truc Hoang, 34, entered their guilty pleas to one-count Superseding Informations before U.S. District Judge Robert B. Kugler. Sentencing is scheduled for November 29, 2005.

According to the Informations (one for each defendant), the father, son and daughter obtained more than $140,000 in money and property from financial institutions through the fraudulent use of credit card accounts. Several months later, the father and daughter fraudulently filed bankruptcy in an attempt to eliminate the debts they incurred through fraud.

According to the Informations, prior to around May 1998 the defendants established numerous credit card accounts with numerous financial institutions. Some of the accounts were jointly held among the defendants or by one of the defendants with another person. By May 1998, the defendants were making regular minimal monthly payments on the accounts, which by that date had an aggregate balance of more than $30,000. According to the Informations, the defendants had a combined income of approximately $76,000 for 1998. During this time period, the defendants obtained substantial increases in their credit limits.

During their plea hearings, the defendants admitted that as their purchases and cash advances reached the credit card limits, they sent payments to the credit card companies in the form of "convenience" checks and checking account checks, knowing that these checks were drawn on overdrawn accounts or closed accounts.

Furthermore, the defendants admitted that, after the payments were posted to the credit accounts - but before the checks were dishonored - they used the credit cards to make additional purchases and to obtain cash advances. The result, the defendants acknowledged, was that they were able to obtain cash and goods far in excess of the credit limits.

Both Can and Leyna Hoang admitted that on June 14, 1999 and July 13, 1999, respectively, they filed for bankruptcy in an attempt to eliminate the debts they incurred through fraud. Can filed a bankruptcy petition seeking to discharge joint liabilities of $353,000, which mostly consisted of credit card debts, according to the Information. Leyna filed a bankruptcy petition seeking to discharge about $125,500 in liabilities, which mostly consisted of credit card debts. Both petitions were assigned to U.S. Bankruptcy Judge Gloria M. Burns in Camden.

Each defendant pleaded guilty to one count of conspiracy to commit back fraud. Can Hoang and Leyna Hoang also pleaded guilty to one count of bankruptcy fraud. Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The charges of bankruptcy fraud and making a false statement in a bankruptcy petition both carry maximum penalties of five years in prison and a $250,000 fine.

In determining an actual sentence, Judge Kugler will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges that take into account the severity and characteristics of the offenses, the defendants' criminal history, if any, and other factors. The judge, however, is not bound by those guidelines in determining a sentence.

Parole has been abolished in the federal system. Defendants who are given custodial terms must serve nearly all that time.

Christie credited Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge.

The Government is represented by Assistant U.S. Attorney Howard Wiener of the U.S. Attorney's Office Criminal Division in Camden.

- end -

Defense Attorneys:

Can Hoang - James J. Carroll, III Galloway Township

Brandon Hoang - Harold B. Shapiro Vineland

Leyna Hoang - Patrick T. D'Arcy, Esquire Galloway Township