<h2>Bankruptcy Fraud Warning Signs</h2>
<ol>
<li>Concealment of assets</li>
<li>Serial bankruptcy cases</li>
<li>Failure to keep usual business records</li>
<li>Incomplete or missing books and records</li>
<li>Conduct well outside ordinary business or industry standards and practices</li>
<li>Unusual depletion of assets shortly before the bankruptcy filing</li>
<li>Recent departure of debtor&#8217;s officers, directors or general partners</li>
<li>Unanswered questions or incomplete information on debtor’s schedules and statement of financial affairs</li>
<li>Frequent amendments to schedules, statements of financial affairs and monthly operating reports</li>
<li>Inconsistencies among recent financial statements, tax returns and debtor&#8217;s schedules and statements of financial affairs</li>
<li>Absence of knowledgeable officers to testify at the Section 345 meeting</li>
<li>Inability to contact principals of debtor at debtor’s stated location</li>
<li>Frequent dealings in cash rather than recorded transactions</li>
<li>Sudden depletion of inventory post-petition without plausible explanation</li>
<li>Inflated salaries, payments of bonuses or cash withdrawals byofficers, directors, shareholders or other insiders</li>
<li>Transfer of property to insiders, shareholders and relatives shortly before bankruptcy</li>
<li>Payoff of loans to directors, officers, shareholders, relatives or other insiders shortly before filing.</li>
<li>Transactions with non-debtor subsidiaries, parent companies or affiliated corporations owned by the same or related persons or entity</li>
<li>A history of prior litigation or post-petition litigation involving breech of contracts, fraud misrepresentations, etc</li>
<li>Complicated corporate structures and relationships.</li>
<li>Creditor confusion concerning corporate structure.</li>
<li>Fire, theft or loss prior to or after filing.</li>
<li>Failure to pay withholding and sales tax.</li>
<li>Startup of a similar business near the time of bankruptcy filing.</li>
</ol>
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