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Press Release

Business Owner Who Lied in Bankruptcy Proceedings Pleads Guilty to Perjury

For Immediate Release
U.S. Attorney's Office, Western District of Washington
Defendant Admits She Lied during Deposition with Bankruptcy Trustee

          The operator of a business that abused bankruptcy filings to get drivers licenses reinstated pleaded guilty to perjury this week in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes.  Between 2012 and 2017, TRACY J. TALLY, 46, of Poulsbo, Washington, admits she unlawfully provided legal advice and assisted people with filing fraudulent bankruptcy forms.  When questioned under oath in a deposition with a United States Trustee, TALLY falsely denied such activities.  TALLY faces up to five years in prison when sentenced by U.S. District Judge Robert J. Bryan on July 13, 2018.

          According to records filed in the case, TALLY operated a business identified as ‘No More Drivin’ Dirty.’  For a fee, TALLY would assist clients with filing false bankruptcy forms, which were subsequently used to exploit a provision that allowed motor vehicle drivers to seek reinstatement of their licenses from the Washington State Department of Licensing upon submitting proof that a bankruptcy proceeding had commenced.  The bankruptcy petitions were false and the bankruptcy proceeding was typically abandoned once the license was reinstated.  In February 2017, TALLY was questioned under oath about whether she had provided unauthorized legal advice to clients.  TALLY claimed she had not, even though she knew at the time she made the statement that she had given such advice to hundreds of clients.

          As part of her plea agreement, TALLY will pay restitution totaling $2,100 to four clients and $15,000 to the United States Trustee.  Prosecutors have agreed to recommend a three-year term of probation.  The ultimate sentence is up to Judge Bryan.

          The case was investigated by the FBI and U.S. Bankruptcy Trustee.  The case is being prosecuted by Assistant United States Attorney Grady Leupold.


Press contact for the U.S. Attorney’s Office is Emily Langlie at (206) 553-4110 or

Updated April 20, 2018

Financial Fraud