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.
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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