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Bankruptcy Crimes - Fraud

Bankruptcy fraud includes filing a bankruptcy petition or other document in a bankruptcy case for the purpose of committing fraud. Bankruptcy fraud also includes making a false representation, claim or promise in connection with a bankruptcy case, either before or after commencement of the case, for the purpose of committing fraud. Bankruptcy fraud is punishable by a fine, or by up to five years in prison, or both.

Knowingly and fraudulently concealing property of the estate from a custodian, trustee, marshal, or other court officer is a separate criminal offense, and may be punishable by a fine, or by up to five years in prison, or both. The same penalty may be imposed for knowingly and fraudulently concealing, destroying, mutilating, falsifying, or making a false entry in any books, documents, records, papers, or other recorded information relating to the property or financial affairs of the debtor after a case has been filed.

Bankruptcy crimes are prosecuted by the United States Attorney, usually after a reference from the United States Trustee, the case trustee, or a bankruptcy judge.


 

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