Recently, a California businessman was arrested after he declared bankruptcy and hid all of his assets during a divorce to avoid paying child support or alimony. The man was involved in a very contentious divorce with his ex-spouse. He was sentenced to more than 17 years in prison for his deception in the matter.
The man was also ordered to pay a $500,000 fine and forfeit assets worth more than $2.8 million. The prosecutors say that they believe it is the longest prison term sentenced for bankruptcy fraud in the Sacramento federal court system.
The bankruptcy fraud came to light after the man called the FBI and asked the agency to investigate his ex-wife. The couple split back in 1999, leaving two children. The FBI looked into the issue, but then turned to investigate the caller, discovering his bankruptcy fraud. In court, the divorcee admitted that he believed if he could conceal his finances long enough he wouldn't have to support his to his children.
The man transferred his finances to others, putting it in many people's names before and after he filed for bankruptcy in 2005. The man then laundered the funds back to himself using a company owned by his attorney. The man was convicted of 15 counts of bankruptcy fraud and money laundering last year alone. His attorney was convicted on one count of conspiring and one count of attempting to commit money laundering.
If you hid assets during your divorce, you need to speak with an attorney immediately. This tactic does more harm than good, and could lead to criminal prosecution. If you have been hiding your divorce assets, call us today to see if we can help you set things straight. At Claery & Hammond, we will provide you with honest legal representation in your divorce from start to finish. Call today to speak with a divorce attorney in Los Angeles.
