Question Fraud in foreign Country

[hohodang]

If someone who commited embezzlement and fraud in foreign country, and being actively sought with an arrest warrant in that foreign country, be stopped of their bankruptcy claim?

I am one of the guy he embezzled money off of. I have documentation that he has embezzled people of money and being actively sought in the foreign country. The police department has issued a arrest warrant and I have a copy of it.

could this be enough to stop the claim if I send it to US Trustee?

Also, he also lied on the bankruptcy filing that he did not work for last 2 years. But I have documentation that he earned money during that period. (his company dealings up to $200,000 selling his company share, etc) But I heard this can be amended on their part with not much consequence.

Thanks

[tobee43]

if the trustee finds there are an substantial amount of assets held by that person, the situation may warrant the trustee to seek and appoint special council to seek any assets you have that they are holding, even embezzled money. but that would be if YOU owed him the money, not the other way around.

if they are filing bk you can file an adversary proceeding against him, and you should be listed as one of the creditors on their petition... however, i certainly would speak with an atty about this. was this secured debt?

it will depend on if you can really prove your case to the satisfaction of the court and then that debt may not be discharged but his bk stay open until the situation is resolved one way or another. i have even seen these type of cases go into arbitration years after the AP's were filed. at the very least you can be a pretty big crumb in his bed.

oh! and welcome to the forum!

[hohodang]

Thanks for the quick reply.

I am not trying to get a lawyer or do a adversary proceeding, but use US Trustee as a means to stop the whole bankruptcy claim based on false information on the claim and fact that police are looking for him in the foreign country. He has no significant asset. He is just a con man. I am not looking to get paid right now, but make him accountable by stopping the discharge of the debt he conned people of.

The amount he owes me is not enough for all the headache and more money that will be spent if I use a lawyer.

I have talked to US trustee person and they are saying if what they are doing is unlawful, whole bankruptcy filing can be rejected. That is the route I am taking.

Yes, I am on the listed of the creditor on the bankruptcy filing.

It is not a secured debt.

[frogger]

http://www.justice.gov/ust/eo/fraud/

[hohodang]

I am currently in process of compiling all the documents.

I was wondering if anyone had similar experience that can give me some insight into this matter.

[despritfreya]

If someone who committed embezzlement and fraud in foreign country, and being actively sought with an arrest warrant in that foreign country, be stopped of their bankruptcy claim? . . . I have documentation that he has embezzled people of money and being actively sought in the foreign country. The police department has issued a arrest warrant and I have a copy of it. Could this be enough to stop the claim if I send it to US Trustee?

No. The act of a crime or an outstanding arrest warrant (in the US or some other country) will not stop someone from filing bk and will not, in and of itself, preclude the debtor from obtaining a discharge of his/her civil liability inside the boarders of the US. Such activities are not relevant to the US Trustee since they do not show the debtor has committed fraud upon the bk court or some other act that would rise to the level of a 727 action.

I am one of the guy he embezzled money off of.

Then, for the civil aspect of the debt to be non-dischargeable in the US, you would need to timely file a 523(a)(4) and (a)(6) complaint. However, I note that you have no intention of doing so. As a result, if the debtor obtains a general discharge, you ability to collect in a civil court within the boarders of the US will be over.

Also, he also lied on the bankruptcy filing that he did not work for last 2 years.

If this is the only “mistake” in his Schedules (you are correct, the documents can be amended) such does not appear to be enough for the Trustee to care. Now, if he has “hidden” the funds earned in those 2 years or has given those funds away then maybe there is something for the Trustee to recover.

It is not unusual for an upset creditor, who has “dirt” on a debtor to spill the beans. There is nothing wrong with spilling the beans but, if you do, it would be best not to appear to be “vindictive”. Appearing vindictive will destroy any credibility you may have. If this debtor has failed to disclose assets held inside or outside of the US, tipping off the Trustee may help in the recovery of the assets and some payment to you down the road. I am dealing with a case right now where the debtor ran a Ponzi scheme and thought he/she could hide assets. My client (before retaining us) became instrumental in helping the UST in locating such assets. Now my client will get back about half of what was lost to the debtor and the debtor will not be getting a discharge.

Des.

[hohodang]

Thanks for the detailed reply.

Some of the debt being discharged on the BK is the money that was embezzled. The arrest warrant is for that embezzlement. Basically, I think he knew he will have to flee to US, so he conned people of money right before he fled. A guy gave him $100,000 few days before he fled to US. Obviously, he is smooth talker too...