A financial adviser faces multiple charges for tax crimes and other crimes. He currently faces five charges for mail fraud, 13 charges for interstate transportation of goods gained in a fraudulent manner, 10 charges of money laundering and three charges for tax evasion.
The man is accused of mismanaging funds for two family friends to benefit himself. The damages in question equal to more than $1 million. The man had previously filed bankruptcy and received federal bankruptcy protection. However, the new allegations may change the situation and leave him civilly liable to these people and to other lawsuits against him due to fraudulent information that he provided to the bankruptcy court.
A Concord court is seeking to release the man from the bankruptcy protection. It asserts that the man did not disclose information that was pertinent to his case, including having income of hundreds of thousands of dollars during the bankruptcy proceedings. He also had access to funds in his father’s bank account that he controlled. This information is in contrast to the zero-dollar income that he listed on his official bankruptcy forms. The two family friends had previously filed civil suits against him, including claims for $900,000 and $1.8 million. However, both of these cases were halted because of the bankruptcy declaration, but they may now be reopened. He is currently scheduled to report to criminal proceedings against him in March.
When a person is facing charges regarding a tax crime or is currently under investigation, a tax attorney may be able to serve as a resource in order to mount a viable defense.
Source: Seacoast Online, “Financial adviser accused of fraud may lose bankruptcy protection,” Aaron Sanborn, Dec. 7, 2012