Divorce attorney and bankruptcy debtor each convicted of federal crimes related to bankruptcy case in which debtor, assisted by an attorney, concealed assets
US v. Stern, F.Supp.3d___, 2012 WL 843637 (US District Ct, ED Wis 2012): Attorney was divorce attorney for his girlfriend. Girlfriend filed bankruptcy, using another attorney as her counsel. Debtor received $95,000 marital settlement in debtor’s divorce, but did not disclose that asset (the $95,000) in her bankruptcy case. To help debtor hide the $95,000, the divorce lawyer put $60,000 of the $95,000 divorce settlement into certificates of deposit, held in the name of the divorce attorney. Debtor was indicted and convicted of bankruptcy fraud, but then was granted immunity, to testify against her divorce lawyer who had hidden the $60,000 for her. Divorce lawyer was charged with, and convicted of, federal crime of money laundering, for hiding the $60,000 for the debtor. Debtor still had not learned her lesson, and next lied to grand jury about the fact that the divorce lawyer had referred debtor to the bankruptcy lawyer, who had filed the bankruptcy case as counsel for the debtor. Debtor was convicted of perjury, for lying under oath to the grand jury.