Bankruptcy Fraud / News

Ohio Man Sentenced for Using Bogus Checks to Pay Bankruptcy Trustee

Todd William Klein, 49, of Reading, Ohio was recently sentenced to three years in federal prison for what investigators claim was bogus checks being used to make payments to his bankruptcy trustee.  The bogus checks turned out to be fake checks he printed at his home while using an old bank account number belonging to a closed account.  Klein was sentenced for obstruction of  justice but has a history of being convicted of other crimes.

Klein filed for bankruptcy protection in May 2011.  Court records related to the case claim Klein gave his bankruptcy trustee two checks, each just over $3,000 in September, a few months after filing.  The money was supposed to be used to pay off creditors.

The checks were created by Klein and were presented as an “Official Check.” This was the way the checks were labeled when they were given to the trustee.  Klein later admitted the checks contained fictitious information and included false account numbers.  He told police the checks were printed on his home computer using paper he purchased from the office-supply store Staples.  The false account numbers were from closed credit union accounts.

Klein pled guilty to the charges last summer and was sentenced this week by Chief U.S. District Judge Susan J. Dlott.  He was ordered to serve his sentence alongside a supervised released violation stemming from a conviction that included bank fraud and interstate transportation vehicle theft.  In 2006, he tried to buy a vehicle with a fake cashier’s check.

 

Reference: http://news.cincinnati.com/article/20130227/NEWS0107/302270139/Man-used-fake-checks-bankruptcy-payments