The Dallas Morning News reported earlier this week on a Dallas resident committing bankruptcy fraud.
The individual, Gary Beach, 66, was convicted of fraud by buying a home in Highland Park and then hiding the payments of the home that cost more than $800,000.00 by having income he received from a company owned by his brother, transfer the payments to another company Beach owned. As a result, Beach is facing five years in prison.
One of the Trustees in the Southern District of Florida in Miami, always starts the 341 meetings by stating that he has caught prior debtors committing fraud and they have been sentenced to jail. Till now, I have had only one case involving fraud since ninety-nine percent of the time clients are truthful in their consultations with me, or in consulting with them, I uncover the information myself.
This one time, the client had transferred a boat to his best friend, and as a surprise, his ex-girlfriend came to the hearing and advised the Trustee of what happened. I settled the case without the client having being prosecuted criminally for his fraud.
In those situations where I think a client is holding back information from me, I advised them that in today’s world due to technology, you cannot hide or transfer assets without the Trustee not knowing about. It’s just not worth the risk considering the possible consequences, especially considering that legally, most of these issues could be resolved.
Alexander Hernandez, Esq.