U.S. Department of Justice
Executive Office for United States Trustees
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USTP Press Release
For Immediate Release
August 21, 1998
WOMAN SENTENCED TO 24 MONTHS IN PRISON,
ORDERED TO PAY $58,012 IN RESTITUTION,
FOR BANKRUPTCY FRAUD AND BANK FRAUD
DALLAS--Musu Cuch Ketter, formerly of Arlington, Texas,
was sentenced yesterday to 24 months in prison, and ordered
to pay $58,012 in restitution, for bankruptcy fraud and
bank fraud, United States Trustee William Neary announced
today. The United States Trustee Program is a component
of the Justice Department that supervises the administration
of bankruptcy cases nationwide.
Ketter pleaded guilty on May 21, 1998, to a two-count
indictment charging her with conducting a fraudulent scheme
involving bankruptcy cases in violation of 18 USC 157
and engaging in bank fraud in violation of 18 USC 1334.
Ketter, conducting business under the name DFW Home
Consultants Inc., obtained Dallas and Tarrant County home
foreclosure lists and contacted persons whose homes were
facing foreclosure. Ketter promised clients that, for
an initial fee of $700 to $850, she would obtain refinancing
for the delinquent mortgages.
Ketter knew she did not have the money or resources
to provide refinancing for her clients. When home foreclosure
became imminent, Ketter instructed her clients to file
for bankruptcy, which temporarily halted foreclosure proceedings.
However, because no further papers were filed in the bankruptcy
cases, the cases were dismissed and foreclosure proceedings
went forward. The bankruptcy filings were added to the
clients' credit histories, injuring their credit ratings
and diminishing the possibility of finding future refinancing.
It is estimated that 30 bankruptcy cases were filed
in the Dallas and Fort Worth divisions of the Northern
District of Texas as a result of Ketter's actions, and
that all of these cases were dismissed, resulting in the
foreclosure of the clients' homes.
The bank fraud charges stemmed from Ketter's attempt
to open a business checking account using a counterfeit
check for $80,216.
"I'm very gratified by the actions taken by United States
Attorney Paul Coggins and the Federal Bureau of Investigation
in this case," United States Trustee Neary stated. "These
measures send a strong message to those who would use
the bankruptcy system to prey upon financially distressed
families."
Ketter's Texas business operations were located in Dallas,
Houston, and Tyler. The United States Trustee made a criminal
referral to the United States Attorney for the Northern
District of Texas in May 1996, and assisted in the investigation
of the case. The United States Trustee's Office in Houston,
headed by United States Trustee Richard Simmons, also
assisted in the investigation of Ketter by providing valuable
information about her activities in south Texas.
Neary is the United States Trustee for the Northern
and Eastern Districts of Texas, with offices in Dallas
and Tyler. Simmons is the United States Trustee for the
Southern and Western Districts of Texas, with offices
in Houston, San Antonio, Austin, and Corpus Christi.
Contacts: William Neary
United States Trustee, Region 6
(214) 767-8967
Public Information Officer
Executive Office for United States Trustees
(202) 305-7411 |
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