Why Was a Reality TV Star Charged With Bankruptcy Fraud?

According to the FBI, recently, a reality television performer was charged by a grand jury in Pittsburgh with bankruptcy fraud, concealment of bankruptcy assets and false bankruptcy declarations. Photo of bankruptcy court

In a press release, the agency noted that Abigale Lee Miller, 50, a star on Dance Moms and other related spinoff shows, has been accused of defrauding a bankruptcy court by concealing income she earned between 2012 and 2013 from her performances on television. She allegedly concealed a total of $755,492.85 from creditors during her case, which was filed in 2010.

As her case was ongoing, Miller allegedly created separate bank accounts to hide income made from her television appearances, as well as merchandise sales from her dance studio. The FBI noted that Miller could now face up to five years in a federal prison for each charge.

“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt resulting from any number of legitimate reasons, but allegations of fraud and abuse threaten the integrity of the bankruptcy process and the public’s trust in it,” said Scott S. Smith, an FBI official, in a press release.

Be Honest With Your Bankruptcy Attorney to Avoid Fraud Charges

As this case shows, it is a bad idea to try to hide assets during a bankruptcy case. You need to be honest with your bankruptcy attorney, the court and your creditors about any properties or money you have or will acquire during the course of your case.

The potential for prosecution is not worth hiding assets during your bankruptcy case. If you file for bankruptcy, regardless of whether it is Chapter 7 or Chapter 13 case, you need to be as honest with the court and answer all questions about assets truthfully, as there could be legal ramifications if you fail to do so.

If you have questions about bankruptcy or have been charged with a crime, talk to our Lewisville bankruptcy and criminal attorneys. Not only can we help you through the bankruptcy process, if issues have arisen and you have been charged with crimes in connection to your case, we may be able to successfully represent you.

As the FBI official noted above, bankruptcy can be a lifesaver for people who are underwater financially. You may be able to successfully discharge certain debts and dig your way out of a financial hole by working with our Lewisville bankruptcy law firm.

Follow our Twitter and Facebook pages for more information about Texas bankruptcy and criminal law. You can reach our office directly by calling (972) 315-6222.

Julian, Crowder & Shuster, P.C. – Lewisville Bankruptcy Attorneys

Source: https://www.fbi.gov/pittsburgh/press-releases/2015/reality-tv-performer-charged-with-defrauding-bankruptcy-court-by-hiding-assets-and-lying-about-income

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