Fairhope Woman Pleads Guilty to Bankruptcy Fraud Charges

Shelia Linton of Fairhope, Alabama pled guilty on September 21, 2009 to a two (2) count information charging her with bankruptcy fraud. Linton was charged with violating 18 U.S. Code Section 157 in that she devised a scheme or artifice to defraud another; and, for the purpose of executing or concealing the scheme or artifice made a false or fraudulent statements or representations in connection with a proceeding she falsely asserted was pending under title 11, the Bankruptcy Code. Linton admitted that on or about March, 2008 and September, 2008, in Foley, Alabama, she knowingly and willfully devised a scheme to defraud Richard L. LaGreco and Erin P. LaGreco and Jerry L. Milburn. She took money from them to file a bankruptcy case on their behalf, but did not do so. She falsely stated to them that their bankruptcy cases had been filed and that their debts had been discharged by the United States Bankruptcy Court. In doing this, she forged two “Final Decrees” to LaGreco and Milburn by forging the typed signature of a Federal Bankruptcy Judge on the decrees. At all times relevant times, she acted knowingly and willfully. Linton stated that the attorney for whom she had worked did not know of these activities.

The case was investigated by agents of the Mobile office of the United States Secret Service and prosecuted by Assistant U.S. Attorneys Charles Baer and Gregory Bordenkircher on behalf of the United States Attorney’s Office, Southern District of Alabama.