Creston Man Sentenced to Probation for Bankruptcy Fraud

United States Attorney Deborah R. Gilg announced that on June 24, 2013, Ross Boydston, age 57 of Creston, Nebraska, was sentenced for his conviction for bankruptcy fraud.  United States District Court Judge John M. Gerrard sentenced Boydston to five years of probation and ordered him to pay restitution in the amount of $18, 044.61.
 
Boydston knowingly devised and executed a scheme to defraud American Mortgage Company (AMC) and subsequently filed a Chapter 12 bankruptcy to further the scheme.  As part of the scheme, Boydston sold livestock which had been pledged as collateral to American Mortgage Company without notifying AMC of the sales and without remitting the proceeds of the sales to AMC.  Boydston subsequently filed a Chapter 12 bankruptcy petition and made material false statements, representations and omissions in his Chapter 12 bankruptcy case in an attempt to conceal the fact that he had transferred and sold livestock collateral of AMC without remitting the proceeds of the sales to AMC.  In this respect, the Boydston’s bankruptcy schedules failed to list all of the transfers and sales of pledged livestock collateral within the two years preceding the bankruptcy filing, and Boydston falsely testified at the first meeting of creditors that there had not been any sales of livestock in which the proceeds had not been turned over to the lien of AMC. 

“This prosecution underscores U.S. Attorney Deborah Gilg’s commitment to help preserve the integrity of the bankruptcy system in the District of Nebraska,”  stated Nancy J. Gargula, United States Trustee for Nebraska, Missouri and Arkansas (Region 13).  “We are grateful to her, her staff and all of our law enforcement partners.”  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 13 is headquartered in Kansas City, with additional offices in Omaha, St. Louis and Little Rock. 

The United States Trustee’s Office assisted the United States Attorney’s Office with the investigation of this matter.