Brentwood Man Indicted for Claiming Bankruptcy While Still Earning $150,000 Salary
While filing for bankruptcy is a great way to reduce the burden of overwhelming debt, it’s never a smart idea to fake it. Unless, of course, you enjoy having the FBI come knocking at your door.
Brentwood resident Michael Ross Smith, age 53, has been indicted on charges of bankruptcy fraud, as well as for violating a court order issued by the Bankruptcy Court for the Middle District of Tennessee by fraudulently withholding documents related to his employment and finances.
A federal grand jury has indicted Smith on three counts of bankruptcy fraud for which he has been accused of claiming to be unemployed while earning an annual base salary of $150,000.
The indictment alleges that, while under oath during an examination by a U.S. Trustee, Smith provided false testimony concerning his employment and salary. He is accused of testifying that he was a temporary employee of a business, with whom he no longer worked, while, in reality, he was still employed as a president of sales.
The FBI has conducted the investigation, along with the U.S. Trustee, and, if convicted, Smith could now possibly face up to five years in prison on each count and a fine of $250,000.
If you are making a solid paycheck, but have been falling behind on multiple payments, there is a much better route to take than bankruptcy fraud. Chapter 13 bankruptcy is the intelligent choice to make in this situation, as its primary focus isn’t cancel all of your debts (thereby infuriating creditors), but to reorganize your debt into manageable payment plans. You don’t even have to be in an emergency situation to file for Chapter 13 bankruptcy, it can work wonders as a preemptive means of handling debt.
Call us today to speak with an experienced bankruptcy attorney. They’ll provide better advice (as well as friendlier conversation) than an FBI agent during an investigation for bankruptcy fraud.
