Bankruptcy fraud is an offence which is committed by a person, company or by any business entity who conceal and falsely state assets or transactions , as well as mislead creditors and/or illegally pressure bankruptcy petitioners. Any person or entity can be investigated and prosecuted under bankruptcy fraud statutes in the state where the accused commit the offense. It includes the following conditions,
- Conceal any of the property that belongs to the accused;
- Make a fake statement or take false oath
- Give, offer, receive, or attempt to obtain by coercion any money or property illegally by act or omission;
- Transfer any concealed property or asset;
- Fabricate, tempered or make a false entry or change in any documents that are related to one's property or financial transaction
- Posses or keep any documents related to one's property and other financial affairs
The Bankruptcy fraud is considered as an extremely serious and critical offense. The conviction or penalty for this offense could leave to face consequences which include up to five years in prison or fines up to $250,000. Additionally, it is considered a federal offense, reason why prosecutors often pursue the maximum penalties and fines allowed by the federal law.
Bankruptcy Fraud Laws in California and Penalties
Committing bankruptcy fraud is a serious and critical white-collar crime that represents millions of dollars every year in the state of California. In a survey, the Department of Justice estimated that 10 percent of all bankruptcy petitions in the state of California contain some elements of bankruptcy fraud. Therefore, the punishments for those who are accused of bankruptcy fraud can be imprisonment up to 5 year in jail and fine up to $250,000.
Concealing assets or resources of one's earning is the most common bankruptcy fraud. It involves intent or purposeful hiding of assets or transaction documents or property during bankruptcy proceedings so that those assets' inclusion or liquidation in the process can be avoided.
- Lack of Intent
- Illegal Search and Seizure
- Insufficient Evidence
- No Cause of Action
- False Accusation
Federal Bankruptcy Attorney California
It is important to hire or consult with legal guidance immediately when facing these serious charges. Therefore, choosing the right federal defense attorney who is experienced and familiar with the federal court system in California regarding bankruptcy fraud is crucial to get the best deal possible. With more than 40 years of experience the Law Office of Raoul Severo is at your services.
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