Feds charge 78 with bankruptcy fraud
Sweep nets 9 lawyers, 1 ex-police officer for concealed assets, fake IDs, docs.

WASHINGTON (CNN) -- Bankruptcy fraud charges have been filed against 78 people in a federal operation aimed at protecting the integrity of the nation's bankruptcy system, the Justice Department and FBI announced Wednesday.

Authorities said the nationwide sweep culminated Wednesday with arrests stemming from 18 cases of bankruptcy fraud and related counts.

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Those charged include nine lawyers, two bankruptcy petition preparers and a former police officer. The cases involved concealment of more than $3 million in assets, use of false identities and forged documents, and fraudulent receipt of government loans and benefits, officials said.

"Bankruptcy fraud is often the tip of the criminal iceberg, and that makes these prosecutions so important," said Deputy Attorney General Paul McNulty.

Bankruptcy filings often are the last step of a series of criminal acts that include mortgage fraud, bank fraud, mail fraud, money laundering and defrauding of government programs, he said.

The culmination of "Operation Truth or Consequences" coincided with the anniversary of new bankruptcy laws aimed at combating fraud.

Authorities said the 78 people charged were named in 69 prosecutions in 36 judicial districts.

FBI Assistant Director Chip Burrus issued a statement staying the nationwide sweep "highlights the scope of bankruptcy fraud and negative impact on the economy."

Top law enforcement officials planned to announce details of the operation at an afternoon news conference at the Justice Department in Washington.

from Justice Producer Terry Frieden.

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.