Springfield Man Charged With Concealing Assets, Making False Statements In Bankruptcy Case
Springfield, Ill. – A Springfield, Ill., man, Michael A. Carr, 50, of St. James Court, has been charged with concealing assets and making false statements related to bankruptcy proceedings, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. The federal grand jury returned the 10-count indictment late yesterday afternoon. The U.S. Clerk of the Court will issue a summons to Carr to appear in federal court in Springfield for arraignment.
According to the indictment, on June 8, 2010, Carr filed a bankruptcy petition to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code. The indictment alleges that, on various occasions, Carr fraudulently concealed property and made false statements in his filings and during bankruptcy proceedings while he was under oath. At the time Carr filed for bankruptcy and in subsequent hearings and filings, Carr allegedly concealed that he owned a motorcycle, a sport utility vehicle, four all-terrain vehicles, and a pending insurance claim arising from the theft of a 1995 Harley-Davidson Softail motorcycle. Further, on or about July 12, 2010, Carr allegedly gave false statements under oath when he testified that his wife’s bank account held $20,000, when he knew that approximately one week prior to the hearing date, his wife had withdrawn $18,000 of the $20,000 and given the cash to Carr.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the Central District of Illinois Bankruptcy Fraud Working Group. The charges were investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10). “I am grateful to U.S. Attorney Lewis and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
If convicted, the statutory penalty for each count of concealing assets (two counts); making false statements in a bankruptcy petition (one count); making false statements under oath (two counts), and, submitting false documents (one count) is up to five years in prison. Carr is also charged with one count of falsification of records in bankruptcy, an offense that carries a statutory penalty of up to 20 years in prison. Final sentences are determined by the court. In imposing sentence, the court may consider federal sentencing guidelines, which include a defendant’s criminal history, the amount of loss, and other applicable factors.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.