Morgan Hill Entrepreneur Sentenced To 56 Months In Prison For Bankruptcy Fraud
SAN FRANCISCO- Steve McVay was sentenced today to 56 months in prison for concealing assets in a bankruptcy proceeding, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge, following a guilty plea entered by McVay on January 25, 2017.
According to papers filed in connection with the case, McVay, 68, of Morgan Hill, Calif., bought and sold real estate and did “hard-money” lending, whereby he regularly acquired real estate in foreclosure actions. Between 2004 to 2009, McVay became involved in several business ventures that ultimately failed. McVay filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the Northern District of California on February 24, 2010. Through the petition, McVay sought relief for approximately $1.5 million in debts. McVay admitted that he signed documents knowingly and fraudulently concealing two bank accounts. One of the accounts McVay opened in his wife’s name and he used the account to receive and transmit funds under his exclusive control. The two bank accounts contained a total of more than $45,000. McVay acknowledged he signed the bankruptcy documents with the intent to hide assets from his creditors, the United States Trustee, the court, and other persons charged with control or custody of the bankruptcy estate.
A federal grand jury indicted McVay on April 28, 2016, charging him with two counts of concealing assets in bankruptcy, in violation of 18 U.S.C. § 152(1), and one count of presenting false testimony in bankruptcy proceedings, in violation of 18 U.S.C. § 152(2). Pursuant to the plea agreement, McMay pleaded guilty to the first count of concealment; the remaining charges were dismissed at sentencing.
In addition to the prison sentence, Judge Koh sentenced McVay to three years of supervised release and scheduled a hearing for June 14, 2017, to determine the amount of restitution McVay must pay his victims. McVay will begin serving his prison sentence on June 28, 2017.
Assistant U.S. Attorney Timothy Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.