Purchasing a home with cash after Bankruptcy

[mountanddo]

and he is now on his way to federal prison for BK fraud and had his discharge revoked.

Wow, what kind of time do you get for that?

[HHM]

Wow, what kind of time do you get for that?

The max is 5 years and up to $250,000 fine, with 2 years of supervised release. Will most BK fraud convictions see that kind of time, not likely, but that is what you are facing.

But bankruptcy fraud is actually can include many underlying crimes
5-8.3.1 Fraudulent Concealment of Property, 18 U.S.C. § 152(1) . . . . . . . . . . . . . . 25United States Trustee Manual Bankruptcy Fraud & Abuse Enforcement Program

5-8.3.2 False Oath, Declaration, Account, Verification, or Statement,
5-8.3.3 False Declarations, 18 U.S.C. § 152(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
5-8.3.4 False Claims, 18 U.S.C. § 152(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
5-8.3.5 Fraudulent Receipt of Property, 18 U.S.C. § 152(5) . . . . . . . . . . . . . . . . . . 28
5-8.3.6 Extortion and Bribery, 18 U.S.C. § 152(6) . . . . . . . . . . . . . . . . . . . . . . . . . . 29
5-8.3.7 Fraudulent Transfer or Concealment, 18 U.S.C. § 152(7) . . . . . . . . . . . . . . 30
5-8.3.8 Fraudulent Destruction or Alteration of Documents, 18 U.S.C.
5-8.3.9 Fraudulent Withholding of Documents, 18 U.S.C. § 152(9) . . . . . . . . . . . . 32
5-8.4 EMBEZZLEMENT AGAINST THE ESTATE . . . . . . . . . . . . . . . . . . . . . . 33

5-8.4.3 Adverse Interest and Conduct of Officers, 18 U.S.C. § 154 . . . . . . . . . . . . . 35

5-8.5 FEE AGREEMENTS, 18 U.S.C. § 155 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
5-8.6 KNOWING DISREGARD OF BANKRUPTCY LAW OR
5-8.7 BANKRUPTCY FRAUD, 18 U.S.C. § 157 . . . . . . . . . . . . . . . . . . . . . . . . . . 39
CHAPTER 5-9: OTHER BANKRUPTCY RELATED CRIMES
5-9.1 MISPRISION OF A FELONY, 18 U.S.C. § 4 . . . . . . . . . . . . . . . . . . . . . . . 40
5-9.1.1 Elements of the Offense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
5-9.2 BRIBERY OF PUBLIC OFFICIALS AND WITNESSES,
18 U.S.C. § 201 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
5-9.3 CONSPIRACY, 18 U.S.C. § 371 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
5-9.3.1 Conspiracy to Defraud the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . 42United States Trustee Manual Bankruptcy Fraud & Abuse Enforcement Program
Table of Contents - (vii)
5-9.3.2 Conspiracy to Violate Laws of the United States . . . . . . . . . . . . . . . . . . . . . 42
5-9.4 CONTEMPT OF COURT, 18 U.S.C. §§ 401 AND 402 . . . . . . . . . . . . . . . . 42
5-9.4.1 What Constitutes Contempt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
5-9.4.2 Authority of the Bankruptcy Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
5-9.4.3 Authority of the District Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
5-9.5 THEFT AND EMBEZZLEMENT FROM EMPLOYEE
PENSION PLANS, 18 U.S.C. § 664 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
5-9.5.1 Elements of the Offense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
5-9.6 ARSON INVOLVING INTERSTATE COMMERCE, 18 U.S.C.
§ 844(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
5-9.6.1 Elements of the Offense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
5-9.7 FALSE STATEMENTS AND SCHEMES, 18 U.S.C. § 1001 . . . . . . . . . . . 46
5-9.7.1 Differences from 18 U.S.C. § 152 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
5-9.7.2 Statements Made to Courts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
5-9.7.3 Elements of the Offense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
5-9.8 FALSE STATEMENTS TO FINANCIAL INSTITUTIONS,
18 U.S.C. § 1014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
5-9.8.1 Relationship to 18 U.S.C. § 152 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
5-9.8.2 Elements of the Offense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
5-9.9 MAIL, WIRE, AND BANK FRAUD, 18 U.S.C. §§ 1341-44 . . . . . . . . . . . . 48
5-9.9.1 Elements of the Offenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
5-9.10 OBSTRUCTION OF JUSTICE, 18 U.S.C. §§ 1503 AND 1505 . . . . . . . . . . 49United States Trustee Manual Bankruptcy Fraud & Abuse Enforcement Program
Table of Contents - (viii)
5-9.10.1 Elements of the Offenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
5-9.11 OBSTRUCTION OF COURT ORDERS, 18 U.S.C. § 1509 . . . . . . . . . . . . 50
5-9.11.1 Elements of the Offense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
5-9.12 TAMPERING WITH WITNESSES OR VICTIMS, 18 U.S.C.
§ 1512 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
5-9.13 FALSE STATEMENTS IN A JUDICIAL PROCEEDING,
18 U.S.C. §§ 1621 AND 1623 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
5-9.13.1 Use of 18 U.S.C. § 1623 over § 1621 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
5-9.13.2 Elements of the Offenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
5-9.14 RECEIVER MISMANAGING PROPERTY, 18 U.S.C. § 1911 . . . . . . . . . 52
5-9.14.1 Application in Chapter 11 Cases to Debtor in Possession . . . . . . . . . . . . . . 52
5-9.14.2 Elements of the Offense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
5-9.15 MONEY LAUNDERING, 18 U.S.C. §§ 1956 AND 1957 . . . . . . . . . . . . . . . 53
5-9.15.1 Illegal "Financial Transactions," 18 U.S.C. § 1956(a)(1) . . . . . . . . . . . . . . . 53
5-9.15.2 Illegal "Transporting Funds or Monetary Instruments,"
18 U.S.C. § 1956(a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5-9.15.3 Illegal Use of "Financial Institution," 18 U.S.C. § 1957(a) . . . . . . . . . . . . . 54
5-9.16 RACKETEER INFLUENCED AND CORRUPT
ORGANIZATIONS (RICO), 18 U.S.C. §§ 1961 AND 1962 . . . . . . . . . . . . 54
5-9.17 INTERSTATE TRANSPORTATION OF STOLEN
PROPERTY, 18 U.S.C. § 2314 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
5-9.18 SALE OR RECEIPT OF STOLEN PROPERTY, 18 U.S.C.
§ 2315 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
5-9.19 FRAUDULENT USE OF CREDIT CARDS, 15 U.S.C. § 1644 . . . . . . . . . . 55United States Trustee Manual Bankruptcy Fraud & Abuse Enforcement Program
Table of Contents - (ix)
5-9.20 EQUITY SKIMMING, 12 U.S.C. § 1709-2 . . . . . . . . . . . . . . . . . . . . . . . . . 56
5-9.21 TAX OFFENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
5-9.21.1 Tax Evasion, 26 U.S.C. § 7201 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
5-9.21.2 Failure to Pay Withholding Taxes, 26 U.S.C. § 7202 . . . . . . . . . . . . . . . . . . 57
5-9.21.3 Failure to File, 26 U.S.C. § 7203 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
5-9.21.4 Fraud And False Statements, 26 U.S.C. § 7206 . . . . . . . . . . . . . . . . . . . . . . 57
5-9.22 REPORTING MONETARY TRANSACTIONS, 31 U.S.C.
§§ 5311-28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
5-9.23 USE OF FALSE SOCIAL SECURITY NUMBER, 42 U.S.C.
§ 408(a)(7)(B) . . . . . . . . .

[mountanddo]

1. No the business was not included as it was never an asset until someone want to buy it. Basically what was purchased was a domain name.

This just doesn't make sense. How is this not an asset just because you didn't have a buyer at the time.

Definition of an asset: Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset.

[tobee43]

i missed something (as usual) here....

if the company had no assets and was not listed on sch b (hopefully OP's atty advised on whether to list or not to list), however, it if was determined that there were absolutely no assets, no value whatsoever, but then at a later date, (sometime down the road) GAINS value..... AFTER a discharge why is this fraud?? there had to be a reason the OP's atty did not have the business listed? ( stirring the pot here, i know).

further, it would seem to be that what percentage of zero at the time of the bk would a trustee be interested in??? only to simply say that someone became interested after the fact to purchase the business and it has some value to maybe only that one soul?? could the trustee have sold this business and rec'd the same amount???

how is it different than a "gift" (LOL) as that is what it seems to be to me. like the old chair you thought was worth nothing until you brought it to antiques road show and you find out it's worth a quarter of a mill...
what is the statue that says you can't sell something laying in the attic after you are discharged?? (don't hit me please). but this is an interesting scenario and i do think it needs a bit more discussion into why and what part of the law would be applicable, as to why it is not alright at this point for the OP.

[tobee43]

ok hhm....but doesn't there have to be some proofs...how could i miss your giant post?? dealing with fraud of course, but proofs....remember innocent until proven guilty, i think still???

[despritfreya]

i missed something . . . if the company had no assets and was not listed on sch b. . ., however, it if was determined that there were absolutely no assets, no value whatsoever, but then at a later date. . . GAINS value..... AFTER a discharge why is this fraud??. . . How is it different than a "gift"

TB,

It is "fraud" because it is not up to the debtor to determine if there is any value. That determination belongs to the Trustee and the Court. It is the debtor's duty under the Code to list all assets regardless of value. A debtor might believe the entity has no value but what if it does? What if there is a competitor out there willing to pay $$ for the name, phone number, whatever? (I actually had this happen. Client said no value, listed entity at no value, competitor offered Trustee $40k, converted to an 11 to protect business.)

In addition, a Trustee is entitled to the appreciation of a non-exempt asset until the asset is abandoned. So, if an asset has no value on day 1 but on day 61 gains value, the Trustee takes it. (This actually applies to exempt assets if the value increases to a point that exceeds the allowed exemption - prior to abandonment.)

Lastly, it is different than a "gift" since, like in the other thread, the gift was acquired post petition from a 3rd party source. The "gift" in this thread is that a pre-petition asset has theoretically gained in value prior to its abandonment from the estate. This is not a "gift". It is simply an increase in the value of an asset belonging to the estate.

OP, if he is caught, will be in big trouble, especially if he has spent the proceeds from the improper sale of estate property. The fraud issue can be avoided if OP "comes clean". Remember, it is not the bad deed that causes one's downfall. It is the cover-up thereafter.

Des.

[tobee43]

TB,

It is "fraud" because it is not up to the debtor to determine if there is any value. That determination belongs to the Trustee and the Court. It is the debtor's duty under the Code to list all assets regardless of value. A debtor might believe the entity has no value but what if it does? What if there is a competitor out there willing to pay $$ for the name, phone number, whatever? (I actually had this happen. Client said no value, listed entity at no value, competitor offered Trustee $40k, converted to an 11 to protect business.)

In addition, a Trustee is entitled to the appreciation of a non-exempt asset until the asset is abandoned. So, if an asset has no value on day 1 but on day 61 gains value, the Trustee takes it. (This actually applies to exempt assets if the value increases to a point that exceeds the allowed exemption - prior to abandonment.)

Lastly, it is different than a "gift" since, like in the other thread, the gift was acquired post petition from a 3rd party source. The "gift" in this thread is that a pre-petition asset has theoretically gained in value prior to its abandonment from the estate. This is not a "gift". It is simply an increase in the value of an asset belonging to the estate.

OP, if he is caught, will be in big trouble, especially if he has spent the proceeds from the improper sale of estate property. The fraud issue can be avoided if OP "comes clean". Remember, it is not the bad deed that causes one's downfall. It is the cover-up thereafter.

Des.

thanks so much for that explanation des. it's good to understand the different scenarios and why it's so important and it's so vital to always do the "right' thing when filing one's bk. anything can come back to bite you back really hard!!!

[mountanddo]

Well I doubt the OP will be back. I'm interested how a "domain name" could bring in over 100k. I need to scoop up a couple of those!

[tobee43]

Well I doubt the OP will be back. I'm interested how a "domain name" could bring in over 100k. I need to scoop up a couple of those!

me too!!!!!!!! now dew...if we can just put our heads together i bet we can think of a really great name maybe we could sell...LOL!!!