A Beverly Hills, California man was recently sentenced to 15 months federal prison after being convicted of bankruptcy fraud. His sentencing comes after he was found guilty earlier this year on related charges in a bench trial that lasted 5 days. Darren David Chaker, 41, will serve a prison term of 15 months which will be followed by a three-year supervised released. He was also ordered to pay a fine in the amount of $2,000.
The judge ordered Chaker to also obtain mental health counseling, anger management and special conditions that included not to harass or stalk others. Bankruptcy fraud is a significant crime when wrongful acts are committed against the system. Because of this, the judge in this case rejected a request by Chaker for a sentence of probation and instead ordered prison.
Chaker filed for Chapter 13 bankruptcy in March 2007. During court proceedings he falsely and fraudulently represented information to the court that he did not have a lease on property in January 2007. Evidence showed he contracted a realtor who helped Chaker get two rental contracts. He failed to provide the court information regarding income earned from the properties.
Chaker also failed to disclose rental leases of past and present residential properties that were facing foreclosure in Houston. He lied to the court and to the property creditor Saxon Mortgage about his situation.
The bankruptcy process is in part with an honor system in which the debtor agrees to comply with the court and provide necessary information upon request to ensure fair treatment of all parties involved.
Reference: http://www.fbi.gov/houston/press-releases/2013/man-sentenced-to-federal-prison-for-bankruptcy-fraud