Examples of Bankruptcy Fraud Investigations - Fiscal Year 2014
The following examples of bankruptcy fraud investigations are written from public record documents on file in the courts within the judicial district where the cases were prosecuted.
New Jersey Woman Sentenced for Bankruptcy Fraud
On December 17, 2013, in Trenton, N.J., Marjorie Parise, of Manahawkin, N.J., was sentenced to 24 months in prison, three years of supervised release and ordered to pay $353,404 in restitution. Parise previously pleaded guilty to one count of bankruptcy fraud for concealing from a bankruptcy trustee profits she had made on a Ponzi scheme investment. According to court documents, in 2003, Parise and her husband invested approximately $115,750 with a company known as Global Trading Investments LLC and received in return profits totaling $429,154. However, the owners of Global Trading were operating a Ponzi scheme and the profits that Parise received were actually the investments of other individuals. Global Trading subsequently filed for Chapter Seven bankruptcy protection. On August 24, 2006, a judgment was entered against Parise requiring her to return the profits she had made from her investments in the scheme. Parise instead took numerous steps to fraudulently conceal a significant amount of funds and assets from the trustee, including making false statements and omissions during a deposition in the bankruptcy proceeding. On July 7, 2008, Parise filed for individual Chapter Seven bankruptcy protection. On her bankruptcy petition, she fraudulently failed to report millions of dollars in real estate holdings plus hundreds of thousands of dollars in personal assets.
North Carolina Doctor Sentenced for Tax Offense
On October 3, 2013, in Raleigh, N.C., Susan Marie Lee was sentenced to 36 months in prison and ordered to pay $496,854 in restitution to the IRS. Lee pleaded guilty on May 14, 2013 to a criminal information charging her with corrupt interference with the Internal Revenue laws. According to the investigation, from 1996 through and 2009, Lee endeavored to obstruct and impede the IRS by failing to file income tax returns or pay taxes she claimed to owe, filing false income tax returns, forming sham entities to disguise personal expenses as payments related to her dental practice, and transferring ownership of her real property to nominees. Lee sought to divert her income into sham corporations and hide her assets from seizure. Finally, in 2009, she filed for bankruptcy in an effort to discharge nearly $1 million in tax debt due and owing to the IRS.