PRESS RELEASE
For Immediate Release
October 28, 2004
'OPERATION
SILVER SCREEN' TARGETS BANKRUPTCY
FRAUD
THROUGHOUT THE UNITED STATES
WASHINGTON, D.C.-United States Attorneys have filed criminal
charges against 21 individuals in 11 different districts on
a variety of federal bankruptcy fraud counts, it was announced
today by Lawrence Friedman, Director of the Executive Office
for United States Trustees. The announcement is the culmination
of "Operation SILVER SCREEN" and follows today's announcement,
by United States Attorney Patrick Fitzgerald of the Northern
District of Illinois, that former trading and investment
firm executive Marc Thompson, age 52, of Chicago,
has been indicted for bankruptcy fraud, wire fraud,
money laundering, and using a fire to commit wire fraud,
and Chicago police officer Deborah A. Ahmad Bey, age 45, has
been indicted for making false declarations in bankruptcy.
Operation SILVER SCREEN spotlights the indictment of 21
individuals in 17 separate prosecutions and demonstrates the
breadth of enforcement actions taken by the Department of
Justice in combating bankruptcy fraud and protecting the integrity
of the bankruptcy system. These cases collectively involve:
the concealment of more than $7 million in assets; illegal
conduct by an attorney and a certified public accountant;
use of false Social Security numbers and false identities;
submission of forged documents; false statements; and various
fraudulent acts.
The combined group of cases is dubbed "Operation SILVER SCREEN"
in recognition of the U.S. Trustee Program's enhanced screening
of bankruptcy cases to identify fraud and abuse. The U.S.
Trustee Program is a Justice Department component that protects
the integrity of the bankruptcy system by overseeing case
administration and litigating to enforce the bankruptcy laws.
It was created by Congress in October 1979 as a pilot program
in 18 judicial districts, and was expanded in 1986 to all
judicial districts except those in Alabama and North Carolina.
"Operation SILVER SCREEN has targeted a wide range of criminal
conduct that strikes at the integrity of the bankruptcy courts
and undermines public trust in the bankruptcy process," Friedman
stated. "The prosecutions announced today demonstrate that
the Department of Justice is committed to detecting, investigating,
and prosecuting those who violate our bankruptcy laws in a
variety of ways. Criminal abuses and schemes will not be tolerated
in our bankruptcy system. The U.S. Trustee Program is working
with law enforcement agencies throughout the country to ensure
this result."
"I wish to express my sincere appreciation for the strong
enforcement actions taken by the U.S. Attorneys' offices,
as well as the cooperative efforts of federal and state agencies
including: the Justice Department's Federal Bureau of Investigation
and Bureau of Alcohol, Tobacco, Firearms and Explosives; the
Social Security Administration Office of the Inspector General;
Internal Revenue Service Criminal Investigations; the Department
of Housing and Urban Development Office of the Inspector General;
the U.S. Postal Inspection Service; the Department
of Labor Office of the Inspector General; the Department of
Homeland Security Immigration and Customs Enforcement; the
Department of Health and Human Services Office of the Inspector
General; and the California Labor and Workforce Development
Agency's Employment Development Department," Friedman
added.
"Operation Silver Screen sends a strong message
that bankruptcy fraud of all types will not be tolerated,
and will be vigorously investigated and prosecuted," stated
Richard E. Byrne, Chief of the U.S. Trustee Program's Criminal
Enforcement Unit. "The array of conduct charged not only threatens
the integrity of the bankruptcy system, but also wastes the
resources of the federal bankruptcy courts. The U.S. Trustee
Program is committed to assisting United States Attorneys'
offices and law enforcement agencies from around the country
as they fight bankruptcy fraud and abuse."
The charges contained in an indictment, information, or
criminal complaint are merely allegations, and the defendant
is presumed innocent unless and until proven guilty beyond
a reasonable doubt.
The charges in all cases are summarized in the attachment
to this release.
Contact: Jane Limprecht, Public Information Officer, (202)
305-7411
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'Operation SILVER SCREEN' Case Summaries
Marc Thompson, age 52, of Chicago,
a former trading and investment firm executive, was
indicted on October 28 in the Northern District of
Illinois on multiple counts of bankruptcy
fraud, wire fraud, and money laundering, and one count of
using a fire to commit wire fraud. The indictment alleged
that in 2002 Thompson intentionally set fire to his residence
to obtain insurance money and made it appear as if the fire
were set by his elderly mother, who died in the fire. The
indictment also alleged that Thompson concealed significant
assets when he filed bankruptcy in 2003, including an off-shore
account containing more than $300,000.
Deborah A. Ahmad Bey, age 45, of Chicago,
was indicted on October 28 in the Northern District
of Illinois on charges of making false declarations
in two bankruptcy cases she filed. In her 1999 case, the defendant,
a Chicago police officer, allegedly failed to disclose assets,
including checking and savings accounts, a transfer of real
property, and income from that property, and failed to disclose
her position as an officer and managing director of a company.
In her 2003 case, she allegedly failed to disclose checking
and savings accounts, her position as an officer and managing
director of a company, and income received from other employment.
Robert McCaffrey, age 54, of West
Chester, Pa., was charged with one count of bankruptcy
fraud on October 28 in the Eastern District of Pennsylvania.
The criminal information alleged that McCaffrey devised a
scheme to defraud and, in connection with that scheme, submitted
a false bankruptcy petition to a local sheriff's office to
delay repossession of his vehicle. Subsequently, he allegedly
filed Chapter 13 bankruptcy but failed to disclose nine prior
bankruptcy filings. After that filing, to obtain reinstatement
of a credit card, he allegedly sent the credit card company
a forged letter that purported to be from the bankruptcy judge
and falsely stated he did not have a bankruptcy case pending.
After McCaffrey was barred from refiling bankruptcy without
court approval, he allegedly filed bankruptcy using his son's
name and Social Security number.
Robert L. Conwell, age 47, of Liberty,
Utah, was indicted on October 27 in the District
of Utah on charges of concealing assets, transferring
assets in contemplation of bankruptcy, false oaths, and false
declarations. When he filed bankruptcy, Conwell allegedly
concealed assets including several firearms, a car, a snowmobile,
and a tax refund.
Michael B. Cummings, age 33, and Laura
Rees Cummings, age 27, both of Centerville,
Utah, were indicted on October 27 in the District
of Utah on charges of concealing an asset, transferring
an asset, making false oaths, and making a false declaration
in their bankruptcy case. Prior to filing bankruptcy, the
defendants allegedly transferred $16,000 to an acquaintance
to hold on their behalf. When they filed bankruptcy, the defendants
allegedly concealed the transfer of the money and their rights
to get the money back.
John H. Wilcher, age 46, of Wilmington,
Del., was indicted October 26 in the District
of Delaware on charges of using a false Social Security
number and making a false statement on his bankruptcy petition.
Wilcher allegedly filed Chapter 13 bankruptcy using a false
SSN.
James Michael Frantz, age 58, of Findlay,
Ohio, was charged in the Northern District
of Ohio on October 12 with bankruptcy fraud, health
care fraud, and tax evasion. Frantz allegedly engaged in a
scheme to defraud health insurers by failing to disclose his
ownership of Medi-Care Orthopedic & Hospital Equipment,
submitting false Certificates of Medical Necessity for wheelchairs,
and submitting bills for wheelchairs never delivered. When
Frantz placed the company in bankruptcy, he allegedly used
bankruptcy estate funds to pay for his condominium renovation.
He also allegedly evaded over $79,000 in federal income taxes
by failing to report that the company paid more than $282,000
for his personal expenses including credit card bills, condo
renovations, boat repairs, and yacht club dues.
Sabrina Asquith, age 40, of Abington,
Pa., was charged in the Eastern District
of Pennsylvania in an indictment unsealed on October
4 with making false statements in a loan application to obtain
an FHA-insured mortgage, using a false Social Security number,
and making a false statement in bankruptcy. Asquith allegedly
obtained a $119,939 mortgage loan using the name and SSN of
her infant daughter, submitting false documentation to make
it appear as if the daughter were an employed adult. Later,
she filed Chapter 13 bankruptcy allegedly using the daughter's
name and SSN.
Jimmy Quan (Toha Quan), age 44, Anna
Wong (Ann You Nor Wong), age 41, and Jenny
Wong (Jenny Yee Nor Wong), age 39, all of San
Francisco, were indicted September 30 in the Northern
District of California on multiple charges stemming
from an alleged scheme to defraud the bankruptcy court and
the creditors of two garment businesses and one property management
business that filed Chapter 11 bankruptcy. The defendants
allegedly concealed more than $2 million in property, checks,
and real estate belonging to the debtor companies' bankruptcy
estates, and diverted approximately $4.7 million in revenues
from one of the companies. Anna Wong and Jimmy Quan were charged
with eight counts of bankruptcy fraud, six counts of false
record entry, two counts of false declaration, 14 counts of
concealment of assets, and five counts of money laundering.
Jenny Wong was indicted on eight counts of bankruptcy fraud,
one count of false declaration, and 10 counts of concealment
of assets.
Cassandra Seay, age 53, of Chicago,
was charged on September 29 in the Northern District
of Illinois with making a false declaration in her
bankruptcy case by claiming she did not own a car when she
actually owned a Lexus automobile. Seay allegedly sold her
home after giving the mortgage lender a forged document that
resulted in the dismissal of a foreclosure action against
her property. She allegedly used some of the sale proceeds
to buy the Lexus.
Deborah Nettles, age 38, of Cleveland,
was indicted on September 29 in the Northern District
of Ohio for creating and negotiating 13 counterfeit
checks, totaling approximately $6,490, that were purportedly
issued by a Chapter 11 bankruptcy trustee.
Cornel George, age 40, of Gresham,
Ore., was indicted on September 23 in the
District of Oregon on one count of concealment and
one count of false oath. After two of George's acquaintances
filed bankruptcy, they asked him to sell their Jaguar, which
was property of the bankruptcy estate. George allegedly sold
the car for approximately $20,000, but secretly kept $12,500
for himself, converting bankruptcy estate property to his
own use.
Kevin Allen, age 37, of South Greenfield,
Mo., was indicted on September 22 in the Northern
District of Indiana on charges that he forged a court
order and gave it to his employer. The forged court order
purported to release an actual court order that allowed the
trustee in Allen's Chapter 13 bankruptcy case to garnishee
his wages.
William Miller, age 54, of Ogden,
Utah, was indicted on September 15 in the
District of Utah on two counts of concealment of
assets and five counts of false bankruptcy declarations. Miller
was charged with concealing real property in Switzerland,
40 acres of real property in Utah, antiques, collectibles,
and sports memorabilia in his Chapter 13 bankruptcy case.
Carol Ann Teegarden, a/k/a Annie Teegarden,
age 29, of Florence, Ky., was indicted on
September 15 in the Southern District of Ohio on
six counts of bankruptcy fraud and one count of witness tampering
for her attempts to stop a utility company from collecting
delinquent payments. The indictment alleged that on five occasions
Teegarden sent false documents to the utility claiming that
she and four other individuals had filed bankruptcy although
no cases were actually filed. Teegarden allegedly listed herself
as attorney for the purported debtors, but she is not an attorney.
Gregory Wayne Ginn, age 44, and
Waylon E. McCullen, age 58, both of Dallas,
were indicted on August 24 in the Northern District
of Texas on charges including concealment and transfer
of assets, aiding and abetting, false statement, and conspiracy
to commit bankruptcy fraud. Ginn, a certified public accountant,
was appointed to carry out the reorganization plan of a company
in Chapter 11 bankruptcy. The indictment alleged that Ginn
transferred $300,000 of the company's assets to his friend
and local lawyer McCullen to cover a check unrelated to the
bankruptcy, and then concealed that transfer. Ginn and McCullen
returned the money to the bankruptcy estate but allegedly
tried to cover up the true purpose of the transaction.
Catherine Linda Moreno, a/k/a Kay
Bruckner, age 65, of Cerritos, Calif., was
charged on August 23 in the Central District of California
with using a false Social Security number in her
two bankruptcy cases.
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