Chapter 7 Bankruptcy Fraud and Income Tax Evasion
This blog has repeatedly reported on what not to do when filing for personal bankruptcy protection and getting a “fresh start” and the reports come down to this: do not submit false testimony, be honest in your bankruptcy petition and schedules, and fully disclose your assets and liabilities to your attorney so he or she can make a plan for you to discharge you debts, if possible.
Topsfield Couple’s Bankruptcy Results in Federal Conviction for Bankruptcy Fraud
Robert Bonefant, of Topsfield, Massachusetts, recently plead guilty to evading almost $400,000 in income taxes owed to the Internal Revenue Service and to making false statements associated with his 2012 Chapter 7 bankruptcy petition and schedules. The bankruptcy was filed by him and his wife. In Mr. Bonefant’s federal bankruptcy petition he attempted to discharge his income tax debt, however, he neglected to disclose that he hid over one million dollars in his father’s bank account, including taxable income and business reimbursements. He filed several income tax returns with false incomes; as a consultant for Monster Cable, he had the company issue checks to a company he owned and also under declared income for 2004 and 2005.
In the personal chapter 7 bankruptcy petition and schedules Mr. Bonefant not only failed to report the income, but he failed to report that he was the owner of three businesses, where, of course, assets were kept. In addition, he failed to disclose the aforementioned bank account in his father’s name, but with his assets there.
Colorado Couple File False Chapter 7 Bankruptcy Petition and Schedules Too
In a similar case in Colorado, Daryl and Wendy Yurek were indicted a few months ago by a Denver federal grand jury for income tax evasion…and bankruptcy fraud. The indictment indicates that when the couple filed for Chapter 7 Bankruptcy protection and a “fresh start” they put some true facts into their Bankruptcy Petition and Schedules – that they owed the Internal Revenue Service $1.2 million and other debts. Unfortunately, they failed to mention numerous other significant facts regarding income and assets, which is, of course, fraudulent. For example, they withheld information from the Trustee that the company that they owned or had control of paid over $572,000 for a Denver condo which they put in their son’s name, plus $43,000 in condo fees. In addition, the company paid $115,719 for renting a vacation house for the Yureks and $116,009 for Daryl Yurek’s golf club membership. Further, Daryl Yurek transferred shares of his company, ID Watchdog, to his son in 2008 and 2009; and then fraudulently stated on his Bankruptcy Petition and Schedules that he had not transferred any such assets. Mr. Yurek’s on line profile indicates that he has “30 Years of start up Management and funding.”
Conviction for Bankruptcy Fraud
The federal penalty for bankruptcy fraud is a prison sentence of up to five years and three years of supervised release, plus a maximum penalty of $250,000.
Contact an Experienced and Effective Bankruptcy Lawyer for Free Consultation
If you have consumer, or tax debts, contact Attorney Neil Burns for a free initial consultation. Most personal bankruptcies are fast and efficient, affording the client a “fresh start.” Some bankruptcies require planning. Call 617-227-7423 today.