News Release
FOR IMMEDIATE RELEASE
November 13, 2008
In matters prosecuted by the US Attorney’s Office for the Southern District of West Virginia:
UNITED STATES ATTORNEY ANNOUNCES COOPERATIVE EFFORT TO COMBAT BANKRUPTCY FRAUD
CHARLESTON, WV – United States Attorney Charles T. Miller announced that four individuals have been charged with bankruptcy fraud. With the charges, Miller announced the cooperative efforts his office and the United States Trustee's office have undertaken to combat bankruptcy fraud in the 23 counties of the Southern District of West Virginia . Bankruptcy fraud typically involves individuals in bankruptcy hiding assets from the bankruptcy court and lying to the bankruptcy court about those assets which could be used to satisfy the debts the bankrupt individuals owe to creditors.
"The United States Trustee program protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws," stated W. Clarkson McDow, the United States Trustee for West Virginia, Virginia, Maryland, South Carolina, and the District of Columbia (Region 4). McDow added, "The office of the United States Trustee and the United States Attorney, both components of the United States Department of Justice, are working together to identify individuals in criminal violation of those laws." The cases are then investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney's office.
Miller stated, "We are a civilized society. We do not jail people for being in debt. We have a process to help people '‘get back on their feet' financially and bankruptcy protection is a critical part of that process. However, when people abuse the bankruptcy process and take affirmative steps to lie and hide assets that could be used to satisfy their creditors, it undermines the process and hurts both creditors and consumers. One can see from the charges filed that bankruptcy fraud is not an isolated problem. It happens and it happens in every corner of the Southern District -- from Williamstown to Bluefield and from Huntington to Charleston."
Miller further stated, "It is no secret that our country faces significant financial challenges. Often, with tough financial times comes an increase in bankruptcy filings. Most of the people who file truly need the protections afforded by bankruptcy. However, this is to serve as a warning to those who would abuse the system: If you are caught, you will be prosecuted."
If people see or suspect bankruptcy fraud, they can contact the United States Trustee's office in Charleston at 304-347-3400 or email ustp.bankruptcy.fraud@usdoj.gov.
Indictments were returned November 12, 2008, by the Grand Jury for the United States Court for the Southern District of West Virginia meeting at Charleston, charging the below defendants with violations of federal law in connection with bankruptcy fraud:
Victoria Ann Caudill, 51, of Bluefield, WV is charged with violating 18 U.S.C. § 152 and 157 concerning a scheme to defraud her creditors and the bankruptcy court, concealment of assets and a false declaration in bankruptcy. She faces 15 years in prison, a $750,000 fine and 3 years supervised release.
Clinton Lee Smith, 62, of Huntington, WV is charged with violating 18 U.S.C. § 152 and 157
concerning a scheme to defraud his creditors and the bankruptcy court, concealment of assets and
a false declaration in bankruptcy. He faces 15 years in prison, a $750,000 fine and 3 years
supervised release.
Jennifer Michelle Longwell, 38, of Williamstown, WV is charged with violations of 18 U.S.C. § 152 concerning concealment of assets and false statements in bankruptcy. She faces 15 years in prison, a $750,000 fine and 3 years supervised release.
An information was filed today charging the following individual with a violation of federal law in connection with bankruptcy fraud:
Tracy Helms, 42, of Charleston, WV is charged with violating 18 U.S.C. § 152 concerning concealment of assets. She faces 5 years in prison, a $250,000 fine and 3 years supervised release.
PLEASE NOTE: The Fifth Amendment and applicable Federal law gives a criminal defendant a personal right of Indictment by grand jury for Federal crimes punishable by more than one year imprisonment. An Indictment is a formal, written accusation by a grand jury. The defendant may waive the right to an Indictment, and, if waived, a Federal prosecutor may then charge by Information without grand jury involvement. Federal crimes punishable by less than a year imprisonment may be prosecuted by Indictment or by Information. An Indictment or Information is merely a formal accusation, it is not proof of guilt; the defendant is presumed innocent until and unless the defendant is found guilty.