A Tamaroa, Illinois man was recently sentenced to three years’ probation for concealing assets when he filed bankruptcy in 2009. David E. Woodside, 37, pled guilty to the charge after he waived an indictment by a federal jury back in December 2012. The United States Attorney who worked on the case, Stephen R. Wigginton, says this case is another example of how bankruptcy fraud and cheating will not be tolerated by court. The goal is to keep the filing process fair for everyone.
In 2009, Woodside attempted to discharge close to $50,000 in debt when he filed for Chapter 7 bankruptcy protection. By law, when you file bankruptcy you are required to list all assets. This includes mentioning interest, settlement or award of any pending lawsuit claims. Woodside failed numerous times to mention a settlement he was expecting to receive in relation to a class action lawsuit pertaining to a train derailment near his residence that occurred in 2003. The settlement was worth roughly $11,000. The settlement was discovered by the Chapter 7 trustee with the funds seized and distributed to creditors.
Woodside was not only punished for bankruptcy fraud with a three-year probation term, he was ordered to pay fines and special assessment fees of $600 and ordered to perform a total of 30 hours community service. Several local, state and federal authorities provided assistance during investigation efforts including the Federal Bureau of Investigation (FBI) and the Peoria Office of the United States Trustee.
Reference: http://www.fbi.gov/springfield/press-releases/2013/tamaroa-man-sentenced-for-bankruptcy-fraud