Benicia Man Sentenced to 6 Months in Prison for Bankruptcy Fraud
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Steven Brian Homan, 62, of Benicia, today to six months in prison, to be followed by two years of supervised release, for one count of concealment of bankruptcy assets, U.S. Attorney McGregor W. Scott announced.
According to court documents, Homan sought protection from and discharge of more than $1.3 million in personal and business debt. He also wanted to preserve a non-exempt cabin in Redding from liquidation. To protect the cabin, Homan arranged to sell it from his bankruptcy estate to a relative for $100,000. However, Homan concealed from the bankruptcy trustee that the cabin had been destroyed by fire before the trustee accepted the offer.
After the fire, Homan filed an insurance claim that settled for more than $258,000 in losses associated with the cabin and personal property contained in the cabin at the time of the fire. That money constituted property of the bankruptcy estate, which Homan concealed from the trustee. After the sale of the cabin was complete, the bankruptcy trustee learned of the fire and concealed insurance settlement.
This case was the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney André M. Espinosa prosecuted the case.