Tag Bankruptcy Fraud

Bergen County, New Jersey, Man Charged With Bankruptcy Fraud NEWARK N.J. – A Bergen County, New Jersey, man was charged today with making false declarations in relation to a bankruptcy proceeding, U.S. Attorney Craig Carpenito announced. Victor Osorio, 40, of Cresskill, New Jersey, is charged by complaint with two counts of bankruptcy fraud. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. According to documents filed in this case and statements made in court: On Feb. 16, 2017, Osorio filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in U.S. Bankruptcy Court for the District of New Jersey. Osorio signed the bankruptcy petition under penalty of perjury, declaring that the information provided was true and correct. In the petition, Osorio stated that none of his affiliates had a pending bankruptcy case, failing to disclose that a business in which he had an interest, “Business 1,” had a bankruptcy case pending at the time in U.S. Bankruptcy Court for the Southern District of New York. Osorio also filed Schedules of Assets and Liabilities, signed under penalty of perjury, in which he stated that he did not own or have an interest in any incorporated or unincorporated businesses. Osorio failed to disclose that he had an ownership interest in Business 1 – and he had declared approximately seven months earlier in Business 1’s bankruptcy documents that he was its sole owner – and had an ownership interest in another business, Business 2. In the Schedules, Osorio also stated that he did not own or have an interest in any checking, savings or other financial accounts, failing to disclose a bank account with a bank based in the Dominican Republic in which he had an interest. On […]

Former Fort Wayne Attorney Sentenced In Federal Court FORT WAYNE – Randall Stiles, 45 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to making a false oath in a bankruptcy proceeding, embezzlement from a bankruptcy estate and failure to file a tax return, announced U.S. Attorney Kirsch. Stiles was sentenced to 6 months in prison and ordered to pay restitution in the amount of $235,055.88 to the Internal Revenue Service and $3,535 to a victim in a bankruptcy case. According to documents in the case, Stiles was an attorney that practiced in the United States Bankruptcy Court which is a specialized area where lawyers assist individuals in obtaining debt relief based on hard times and financial hardships. Stiles was in a position of trust not only to his clients but to the Court, the Trustee and the legal process. In this case, Stiles’ criminal conduct arose not only from his representation of a client in bankruptcy, but his criminal action in his own personal bankruptcy filing in 2013. Stiles stole from his client, and lied to the Trustee about the filing of his tax return. When faced with possible consequences of his conduct, he did plead to 2 felony counts of bankruptcy fraud and a misdemeanor tax count in September of 2017. Stiles, in his plea, agreed to pay restitution to the client and IRS and agreed to file his unfiled tax returns for 2009, 2010, 2011and 2012. Before the filing of these federal charges, Stiles was suspended indefinitely by the Indiana Supreme Court from the practice of law. US Attorney Kirsch said, “Attorneys have a duty and obligation to represent their clients fairly and with integrity. Stealing from clients and lying to the court violate the ethics […]