Ponzi Scheme Defendant Faces Bankruptcy Fraud Charges
Posted in News on February 4th, 2013
Scams and schemes aimed at making easy money off of unsuspecting consumers has been a long plaguing problem. However, at the height of the recession and foreclosure crisis new tricks have emerged that have left thousands of people in financial turmoil. Further, an increase in bankruptcy fraud has also coincided with many of the convicted parties.
Investing In Trouble
A New Jersey woman was convicted this week of bankruptcy fraud after she was found to have been hiding vital information about her finances. The Ocean County woman fraudulently failed to report millions in real estate holdings, hundreds of thousands of dollars worth of personal assets and misrepresenting fund accounts in her bankruptcy petition. The filing came just two short years after being convicted for her participation in a Ponzi scheme in 2006.
The defendant and her husband has invested roughly $115,750 with Global Trading Investments LLC in 2003. After profiting more than $429,000 the couple was found to have been participating in a company that was profiting off of other people’s investments. The court ordered the couple to return the profits made, which subsequently lead to their filing in 2008. It wasn’t until recently that the court discovered the woman had withdrawn nearly $456,000 in cash prior to her Chapter 7 filing, ultimately lying about the state of her current income and assets. She is facing up to five years in prison and a $250,000 fine.