Bankruptcy Fraud

The increased number of Bankruptcy filings in the past several years has brought about a great deal of scrutiny in bankruptcy filings and hearings.  Bankruptcy crimes include a variety of conduct, but the most common form of bankruptcy fraud is concealment of assets and making false statements.  Making false statements includes perjury and false testimony in a judicial proceeding.  The offense of concealment of assets is often committed by failing to list an asset on the estate of the debtor.  To prove Bankruptcy Fraud in the form of concealment of assets, the following elements must be proved beyond a reasonable doubt:
  1. concealment
  2. knowing and fraudulent
  3. of property of the estate of a debtor
  4. in a bankruptcy case. 
Bankruptcy crimes fall under 18 U.S.C. section 152, and include the following conduct:
  1. concealment of assets
  2. making a false oath in a bankruptcy proceeding,
  3. Knowingly making a false or fraudulent account declaration,
  4. presenting false claims against a bankruptcy estate,
  5. receiving property with the intent to defeat the Bankruptcy Code,
  6. transfers with the intent to defeat Title 11, 
  7. fraudulent pre-bankruptcy transfers,
  8. concealment or destruction of records,
  9. fraudulently withholding recorded information from a Bankruptcy Trustee.  
Bankruptcy fraud can be often difficult to prove, so the government looks to find scenarios which involve a substantial monetary loss; sufficient evidence is necessary  to prove fraud.

The offense guideline section applicable to Bankruptcy Fraud is U.S.S.G. section 2B1.1, this guideline is also used for larceny, embezzlement, bank fraud and forgery. 
The Base offense level starts at 6, but is increased based on the amount of loss determined by the District Court at sentencing.  The amount of loss often includes the amount owed to creditors or the value of the assets concealed.