Maryland Woman Pleads Guilty to Bankruptcy Fraud

January 1st, 2013 by Reed Allmand

Bethesda, Maryland resident Diana J. Stout, 56, plead guilty earlier this month to bankruptcy fraud which included providing false statements and concealing assets in relation to her April 2010 Chapter 7 bankruptcy filing.

When Stout filed her bankruptcy petition she failed to disclose a variety of assets including property transferred to her daughter, an 18kt white gold diamond bracelet, 797 stock shares from Eagle Bancorp Inc., and 2 vehicles including a 2005 Chevy Avalanche SUV and a 1993 Toyota Supra.  Several months after filing her petition Stout sold her Toyota for $14,000, sold her stock for over $10,000 and received $85,000 for the bracelet.  The sales of the items where never reported to her bankruptcy trustee.

At the time Stout filed bankruptcy her filing prevented a civil complaint from being carried out against her and her 2 children by a former boyfriend.  The complaint stated that Stout misappropriated more than $1 million of his assets.  While Stout and her boyfriend dated in 2008, Stout and her daughter purchased property in South Carolina with the boyfriend’s money.  In 2009 when the relationship ended interest in the property was transferred to her daughter for one dollar.

When Stout filed bankruptcy she mentioned a home she owned in Hagerstown, Maryland.  In 2010, she filed an insurance claim for reimbursement of repairs on the home.  This information was also withheld from the bankruptcy trustee.  She received checks from the insurance company that had her name and the name of the contractors who completed the work. She forged their names on the checks and kept the money without paying for repairs.

In 2011 the bankruptcy trustee sought to recover interest in the South Caroline property because the transfer was meant to defraud creditors.  Deed papers associated with the property had false information claiming the property was transferred to the daughter for $75,000.  She also falsified an “Answer” filed in response to the complaint against her by signing her daughter’s name and falsified documents claiming to be from creditors.  Stout later admitted to her actions.  She faces 5 years in prison on each of her 2 counts and will be sentenced in February 2013.

 

Reference: http://www.fbi.gov/baltimore/press-releases/2012/bethesda-woman-pleads-guilty-to-bankruptcy-fraud

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Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

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