PHOENIX, ARIZ.--Bankruptcy
petition preparer Richard S. Berry of Tempe, Ariz., was
sentenced yesterday by Chief Judge Robert C. Broomfield
of the District of Arizona to six months in prison for criminal
contempt of court, United States Trustee Brenda Moody Whinery
announced today.
"I am pleased that
Chief Judge Broomfield focused on the severity of Mr. Berry's
willful disregard of Bankruptcy Court orders and imposed
the maximum penalty against him," Whinery stated. "This
will act as a deterrent to other document preparers who
think they can ignore court orders. The Office of the United
States Attorney is to be commended for its diligent prosecution
of this matter."
Since January 1997,
various court orders have addressed Berry's violations of
the federal bankruptcy laws that regulate "bankruptcy petition
preparers"--non-attorneys who assist consumer debtors in
preparing their bankruptcy papers. Bankruptcy petition preparers
may not provide, or represent that they provide, legal services.
Typically, they are restricted to typing documents for consumer
debtors to file with the bankruptcy court.
Bankruptcy courts
have the authority to set a reasonable fee for a bankruptcy
petition preparer's services. The Bankruptcy Fraud Task
Force for the District of Arizona sought criminal contempt
charges against Berry based on evidence that Berry violated
a January 1997 bankruptcy court order limiting his fees.
The task force includes representatives from the United
States Attorney's Office, the United States Trustee's Office,
the Federal Bureau of Investigation, and other law enforcement
agencies.
Berry pleaded not
guilty in June 1998 to criminal contempt charges filed under
18 USC 401(3). Chief Judge Broomfield held a trial on the
criminal contempt charges on Aug. 12, 1998. On Feb. 3, 1999,
he entered an order finding Berry guilty and setting April
19 as the date for sentencing.
In a related ruling, on March 6,
1998, the Bankruptcy Court for the District of Arizona imposed
fines of $1 million each against Berry and two corporations
he owned, for willfully violating the orders barring them
from preparing bankruptcy documents and advertising for
bankruptcy business in the District of Arizona. Baum also
held Berry and the corporations in civil contempt and barred
them from soliciting customers for bankruptcy document preparation
or providing any bankruptcy preparation services.
The United States
Trustee Program is a component of the Justice Department
that supervises the administration of bankruptcy cases nationwide.
Whinery is the United States Trustee for Region 14, the
District of Arizona.
Contact: Brenda Moody Whinery
United States Trustee, Region 14
(602) 640-2100
Public Information Officer
Executive Office for United States Trustees
(202) 305-7411