A New Jersey man has been sentenced to 18 months in prison for concealing assets in a November 2008 bankruptcy petition he filed. Brian Young, 39, was the sole proprietor of Brys Landscaping, d/b/a AAA Interlocking Pavers, when he filed a petition for Chapter 7 bankruptcy protection in the state of New Jersey.
In his petition, Young claimed he had $100 cash, $3,000 in a checking account, $3,700 in household goods and furnishings, $450 in clothing, a 2006 Ford F-350 valued at $8,000 and no other personal property of any kind not already listed in the petition. However, it was later found that he had concealed almost $200,000 of personal assets from the U.S. Trustee, the bankruptcy case trustee and creditors.
According to a report in the publication CPA Practice Advisor, Young failed to list $174,865 in at least two financial accounts, approximately $13,000 in household goods and furnishings, and an additional 2003 Ford truck valued at roughly $10,000, all of which he had at the time he filed his bankruptcy petition. Investigators from the FBI also found documentation from eBay Inc. which showed that Young earned $250,000 between 2007 and 2008. Young also failed to disclose that he had transferred funds from different accounts including over $250,000 to his son’s account.
In May of this year, Young pled guilty to one count of bankruptcy fraud. He had faced maximum potential penalty of five years in prison and a fine of $250,000. In addition to his prison sentence, the judge also ordered Young to two years of supervised release and ordered him to pay $197,865 in restitution to the U.S. Trustee and his bankruptcy creditors.
What Brian Young did, concealing assets, was obviously criminal. But filing for bankruptcy can be a complicated procedure and it’s important to consult with a qualified bankruptcy attorney who will ensure that your petition is done properly and legally.