An "Asset Search In A Chapter 7 Bankruptcy Case" talks about researching a debtor’s bankruptcy petition and other court filings to help determine whether there is any fraudulently concealed bankruptcy estate property.  This type of research recently resulted in the filing of a bankruptcy fraud complaint against Kelvin Daniels, who is a New York City cop. 

Mr. Daniels is accused in U.S.A. v. Daniels 7:09−mj−02103, of fraudulently concealing bankruptcy estate property during his New York bankruptcy in the summer of 2005.  A Department of Justice press release claims that Mr. Daniels failed to schedule and otherwise disclose his deeded property on Third Street in Newburgh, New York. 

A bankruptcy debtor who conceals an asset, fails to list an asset on schedules, undervalues an asset or provides a misleading description of an asset, may violate 18 U.S.C. §152 (1) Fraudulent Concealment (punishable fine up to $500,000 for corporations and $250,000 for individuals and /or imprisonment up to five years).

Other bankruptcy fraud statutes which commonly relate to asset concealment include:

  1. 18 U.S.C. §152 (2) (False oath or account);
  2. 18 U.S.C. §152 (3) (False declarations);
  3. 18 U.S.C. §152 (7) (Fraudulent pre-petition transfers or concealment);
  4. 18 U.S.C. §157 (Bankruptcy fraud).

Copyright 2009 Fred L. Abrams