Dallas Bankruptcy Fraud Defense Lawyer

The bankruptcy process should ideally end with an individual or business discharging debts that have become unmanageable while creditors receive their equitable share of the debtor’s assets. However, in some cases, creditors may accuse a debtor of cheating the process by hiding assets, giving false statements, or engaging in other forms of bankruptcy fraud. Instead of a fresh financial start, the debtor may suddenly face the prospect of significant civil and criminal penalties under federal law.

A Broden & Mickelsen, LLP, we know that going through a bankruptcy proceeding is challenging enough. To find yourself dealing with a white-collar crime, fraud investigation, civil action, or nonviolent criminal charges can make the situation seem overwhelming. We’re here to help. With more than 60 years of combined criminal defense experience, including handling numerous trials and appeals in federal courts in Texas and many other states, we will know how to protect your rights and fight for the best possible outcome for you.

A federal bankruptcy fraud case can move quickly. It will be essential to get legal help as early as possible. Call or contact us online today to discuss your case with a Dallas bankruptcy fraud lawyer if you have been charged or faced an investigation for bankruptcy fraud. Our initial consultations are free and confidential.

What Is Bankruptcy Fraud?

The federal government’s criminal bankruptcy fraud laws are set out in Chapter 9 of Title 18 of the U.S. Code. While all offenses defined in this chapter are associated with bankruptcy fraud, the statute the federal government most often relies on in a bankruptcy fraud prosecution is 18 U.S. Code § 157.

The statute makes it a crime for anyone to intentionally file a fraudulent bankruptcy petition or other documents in a bankruptcy proceeding or to otherwise make a “false or fraudulent representation, claim, or promise” related to a bankruptcy proceeding, including falsely claiming to be going through bankruptcy when one has not been initiated.

Additionally, Chapter 9 prohibits conduct such as knowingly and fraudulently concealing or transferring assets or making false oaths and claims in violation of 18 U.S. Code § 152.

While debtors are frequently charged with bankruptcy fraud, creditors can also face liability. For instance, under 18 U.S. Code § 152, it is illegal to file a false claim against a debtor in a bankruptcy proceeding with the intent to defraud or knowingly and fraudulently receive “any amount of material property” from a debtor after a bankruptcy petition has been filed with the intent to skirt federal bankruptcy laws.

Types of Bankruptcy Fraud

Bankruptcy fraud is a federal crime. Typically, the Federal Bureau of Investigation (FBI) will investigate cases of suspected fraud, while the local U.S. Attorney’s office will handle the prosecution of the case. However, other federal agencies, including the Internal Revenue Service (IRS), may become involved in a case.

Many types of bankruptcy fraud can be prosecuted. The FBI and prosecutors typically pursue cases in which an individual or business is suspected of:

Concealing assets or transferring them to another person. To keep assets from being liquidated and ultimately paid out to creditors, a debtor may try to hide the assets in different bank accounts or transfer them to another person or entity.
Filing for bankruptcy multiple times in different courts. Although an individual or business can file more than one bankruptcy, they must wait a certain period between filing and filing a petition for legitimate reasons. If a person becomes a serial bankruptcy filer, it can raise questions about criminal intent.
Providing false information or omitting material information. The bankruptcy process works only when debtors and creditors alike participate in the process with honesty and transparency. For example, if a debtor fails to list an asset to keep it from being liquidated or a creditor fraudulently stakes a claim to the debtor’s assets, it could lead to criminal charges.
Bribing a court-appointed trustee. A person or company facing bankruptcy can be under tremendous personal, professional, and financial strain. As a result, the debtor may communicate unclearly or improperly with a trustee and face exposure to being prosecuted for bribery.

“My family were referred to Mick Mickelsen by another attorney. From day one we met Mick, we felt he knew what he is doing!! Most of all I appreciate his honesty, diligence, professionalism and his extent knowledge of the law! He is a great attorney with great tactics. What I also appreciated was that he always responded with timely manner, even when I texted him after hours! We won the case and We are grateful to him. Every penny spent on Mick was worth it! Highly recommend Mr. Mickelsen!!!!”
Former Client

“We hired Mick to help in a legal situation in our family. He knows the law and how to get things done! Mick was always prompt to answer any calls, emails, texts and had a way to explain the law and processes where we could understand it. Mick is meticulous and detailed as well as diligent. He is an advocate for the client and family! We were able to receive a favorable outcome! Highly recommend, if you need a great attorney!”
Former Client

“I would highly recommend this law office and Mick Mickelsen. He was very professional and knew his business and the law. He represented me in an ICE investigation that even with his doubts stuck by me and we essentially WON this case. Overall hour charge was WORTH every penny for his professionalism and quick contact. If in need, call MICK first.”
Former Client

“Mick represented my brother recently (2015-early 2016). I can’t thank him enough how he handled my brother’s case. Mick was very knowledgeable, experienced, professional, and responsive. Whenever I called or texted him for questions or concerns regarding my brother, he was very prompt to get back to me. If you need a criminal lawyer, he is THE ONE! Don’t waste your time & money on those lawyers who are only interested in your money without professionalism. My family and I have been grateful to him for his HELP!”
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Understanding Bankruptcy Fraud Penalties

If you are found guilty of bankruptcy fraud, it could lead to devastating civil and criminal consequences. For instance, if you are found guilty of violating 18 U.S. Code § 157, you could face a fine as high as $250,000 and up to five years in federal prison. In many cases, a person convicted of bankruptcy fraud is found guilty of other offenses as well, including mail and wire fraud.

When a federal court sentences a person who has been found guilty of bankruptcy fraud, the court will apply the U.S. Sentencing Guidelines to determine the sentence, fines, and other punishments, including restitution. The guidelines consider many mitigating and aggravating factors, including a defendant’s criminal history.

In addition to criminal consequences, a person convicted of bankruptcy fraud may face civil lawsuits from creditors who claim harm from their actions. It is important to know that a civil claim has a lower standard of proof. It does not require proof beyond a reasonable doubt.

We always consult with our clients about the risks they face as they proceed in cases, including potential punishment if convicted. We believe it’s important to examine all aspects of a case when preparing an effective defense strategy.

What To Do If You Are Charged with Bankruptcy Fraud

If you receive a grand jury subpoena for documents related to your bankruptcy filing, or if an FBI, IRS, or other investigator reaches out to you to schedule an interview, you should contact an attorney without delay. Any statements or information you give to investigators or prosecutors can – and likely will – be used against you. An attorney can advise you and help you make the right decision.

In some – but not all – cases, it may be helpful to provide information during a bankruptcy fraud investigation. The information may help to clear up confusion and ultimately lead to the charges being dismissed or never even indicted.

Defenses Against Bankruptcy Fraud Charges

The types of defenses which can be asserted will depend on a case’s unique facts and circumstances. In addition to suppressing unlawfully seized evidence, commonly raised defenses in Dallas bankruptcy fraud cases include:

Insufficient evidence – Prosecutors can rarely show fraudulent intent through direct evidence. They must rely on circumstantial evidence that may do no more than raise suspicion of guilt while falling far shy of being sufficient evidence.
Mistake – Someone accused of filing a fraudulent claim or knowingly making a false statement with intent to defraud may be able to show it was a mistake of fact rather than a part of a criminal scheme.
Entrapment – When investigating fraud, a federal agency may cross the line and encourage a person or company to commit a criminal act during a bankruptcy proceeding.
Unlawful Search and Seizure – In one bankruptcy fraud case, at Broden & Mickelsen, LLP, we successfully argued for suppression of all evidence that officers unlawfully obtained in a roadside stop for a client who faced a bankruptcy prosecution in Dallas.

How Our Dallas Bankruptcy Fraud Lawyers Can Fight for You

As attorneys who are board certified in criminal law and criminal appellate law by the Texas Board of Legal Specialization, we have experience defending people against fraud charges. We often represent clients in the federal courts where bankruptcy fraud cases are prosecuted, such as the U.S. District Court for the Northern District of Texas in Dallas.

When we take on your case, we will:

Thoroughly investigate your bankruptcy fraud allegations. We work with investigators and regularly consult with experts in fields such as forensic accounting. Our team will help us to unearth the critical facts in your case and identify issues in the federal government’s case against you.
Review the charges, evidence, and options available to you. We take a team approach to our cases, with both law partners contributing their knowledge and experience to our clients’ defense. A partner will meet with you to discuss your bankruptcy fraud case and help you make an informed decision about how to move forward.
Aggressively defend you at every stage in your case. Whether we are advising you during an investigator’s interview, arguing a motion in court, challenging the prosecution’s case before a jury, or negotiating a plea agreement on your behalf, we will always put your best interests first.
Keep you informed. At Broden & Mickelsen, LLP, we believe communication is the cornerstone of an effective defense. We will work closely with you throughout your bankruptcy fraud case to develop and carry out a strategy that protects your rights.

Our goal is to resolve cases for our clients as efficiently as possible. We can begin our defense during the investigation stage and before an indictment is returned. For that reason, it is crucial that you connect with us as soon as possible about your federal bankruptcy fraud case.

Texas Bar Certified Criminal Defense and Criminal Appeals

Our Dallas Bankruptcy Fraud Attorneys Are Ready to Help You

Bankruptcy fraud is a federal crime that carries serious consequences. If you have been charged with this offense, or if you believe you are under investigation for it, contact Broden & Mickelsen, LLP. We can bring to your case more than 60 years of combined legal experience and a firm commitment to pursuing the best possible outcome.

Call or reach us online today to learn more.

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