Fuquay-Varina Man Sentenced To 24 Months For Bankruptcy Fraud And Obstruction Charge
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced DONALD Wayne MANGUM , 52, of Fuquay-Varina to 24 months imprisonment, followed by 3 years of supervised release, and ordered him to pay $101,675.00 in restitution.
MANGUM was named in an Indictment filed on October 24, 2013, charging him with Bankruptcy Fraud and Destruction, Alteration, and Falsification of Records. On December 16, 2013, MANGUM pled guilty to those charges.
According to the investigation, on February 28, 2011, MANGUM fraudulently filed a Chapter 13 bankruptcy petition in the Eastern District of North Carolina, in the name of someone else in an effort to prevent the mortgage holder from foreclosing on his home. MANGUM failed to file a schedule of assets and liabilities or statement of financial affairs. The debt counseling statements, which were fraudulently filed under the penalty of perjury by MANGUM, were signed in the name of another.
Further, on June 10, 2011, MANGUM fraudulently filed a pro se Chapter 13 bankruptcy petition in the Eastern District of North Carolina, in the name of another. The debt counseling statement was fraudulently filed under the penalty of perjury by MANGUM.
MANGUM appeared at a Rule 2004 Examination in February, 2012, during which time he admitted to the fraudulent filings, and admitted to making misleading statements.
On June 12, 2012, the Bankruptcy Court entered an order directing that the two fraudulently filed cases be dismissed ab initio and directed that the records be expunged other than as necessary for further investigation. MANGUM was barred from filing bankruptcy for ten years and was permanently enjoined from assisting another individual with bankruptcy filings. Lastly, as a sanction, MANGUM was ordered to pay $2,500 to the United States Bankruptcy Court within five months.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.