At Norman Spencer Law Group PC, we provide first-class representation to clients charged with bankruptcy fraud in the New York City area including Long Island and New Jersey.

The function of bankruptcy as a legal status is giving debtors a fresh start. It is an element of an intricate jurisdictional structure and it is not uncommon to produce some mistakes while filing for company liquidation. Bankruptcy abuse charges can result in both civil and criminal penalties.

A person accused of such crimes needs to consider contacting an experienced bankruptcy fraud attorney as soon as possible. Fortunately, you’ve already found one, here!

The most common form of bankruptcy fraud is a willful misrepresentation of material facts in any documentation that is related to filing for company liquidation. These include petitions, statements, schedules and so on, which are submitted under penalty of perjury.

Apart from these instances, another common form of this crime includes submitting false testimonies regarding the financial debtor’s situation, usually this occurs during the meeting of creditors. Another type of related offenses is concealing property of the estate or transferring it while in the process of liquidation with intent to defraud the government, shareholders or other parties involved.

Debtors are not the only party that may be charged with criminal and civil penalties for related fraud. Third parties such as corporate shareholders for example can also be subjects of these penalties under the Bankruptcy Code and other federal and state criminal statutes.

The verification of any information that is submitted by debtor, on most occasions, is conducted in accordance with Federal Bankruptcy Rule 2004. The effectiveness of this rule in exposing fraudulent activities has earned such examinations the name of “fishing expeditions”. One of the most important aspects of this Rule is that it gives courts the power to perform investigation of any entity that is involved on request of any party in interest.

Under the Title 18 of the United States Code, Chapter 9: Bankruptcy, various civil and criminal penalties can be imposed if fraud is detected.

When investigating into the insolvency resolution process, the agencies employ professionals such as brokers, accountants, appraisers and others in order to examine the debtor’s affairs and verify claims.

Our team of New York criminal defense attorneys has all the experience and resources necessary to build a strong defense as bankruptcy fraud defense lawyers and bring your case to the optimal conclusion. We have succeeded in representing debtors, creditors, fiduciaries and other parties in related criminal cases. So when it is time to discuss your situation with a white-collar defense attorney, call us to schedule a consultation.