White-Collar Crime

Bankruptcy Fraud: Other Crimes Committed

Here are some of the most common crimes committed when perpetrating bankruptcy frauds:

Public Corruption— Any attempt to receive or offer a bribe to a United States Trustee, the Clerk’s Office, Judges or witnesses, related to any matter before a bankruptcy court.

Identity Theft —Identity thieves file fraudulent bankruptcy cases using someone else’s name or Social Security number.

Professional Fraud —Attorneys, petition preparers or other bankruptcy professionals solicit debtors alleging they can assist debtors in avoiding eviction, foreclosure or repossession. Thereafter, the bankruptcy professional engages in rescue fraud, mortgage fraud, or identity theft by removing equity from debtors’ property before filing bankruptcy.

Mail/Wire Fraud —When the debtor uses the mail or electronic communications covered under federal wire and mail fraud statues to carry out the bankruptcy fraud.

Bank Fraud —The debtor knowingly makes a false statement or report, or willfully overvalues any property or security, for the purpose of influencing any action of listed financial institutions in relation to loans or securities for loans.

Serial Filers —The debtor files numerous cases to take advantage of the automatic stay to prevent eviction, foreclosure, and collection on debts by using variations of their names or fictitious names and Social Security numbers.

Money Laundering —Significant amounts of money (more than $10,000) are moved about in bankruptcy cases related to concealing assets, false oaths, claims, or bribery.

Government Program Fraud —Debtors get benefits they aren’t entitled to from a government program such as Medicare, veterans benefits, or Social Security benefits, and then concealing the funds from the Bankruptcy Court.

Mortgage Fraud—Acquiring the titles to multiple properties with no intention of paying the mortgages. The perpetrator collects the proceeds from the property, then files a bankruptcy to stall foreclosure and to allow the scheme to continue.