Bankruptcy Fraud - Criminal Investigation (CI)
According to the United States Bankruptcy Court, there were more than 1.2 million bankruptcy filings in fiscal year 2012. Bankruptcy fraud results in serious consequences that undermine public confidence in the system, taint the reputation of honest citizens seeking protection under the bankruptcy statutes, and have a negative impact on voluntary compliance in our income tax system. With so much at stake, the detection and prosecution of bankruptcy fraud continues to be an area of focus for the IRS, as well as the Department of Justice.
The goals of IRS Criminal Investigation’s Bankruptcy Fraud Program are to:
- Increase voluntary compliance with federal tax laws through the prosecution of those committing significant crimes in the bankruptcy arena
- Enhance IRS presence among bankruptcy professionals and practitioners for the dual purpose of increasing compliance and providing contact points to report allegations of fraud
- Foster enhanced cooperation between the IRS Operating Divisions and Criminal Investigation in attaining mutual compliance goals
Bankruptcy fraud enforcement statistics on investigations initiated, prosecutions recommended, indictments, sentenced and months to serve in prison.
Examples of Bankruptcy Fraud Investigations
Examples are written from public record documents on file in the court records in the judicial district in which the cases were prosecuted.