Suspected criminal bankruptcy fraud is investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney. Employees of the FBI and USA are people, and subject to the same failings and bad judgments that can plague any other person.
For example, in 2011 former FBI Special Agent Darin Lee McAllister, of Brentwood, Tennesse, was sentenced to 48 months in prison after a jury convicted him of 15 counts of wire fraud (18 U.S.C. § 1343) and three counts of bankruptcy fraud (18 U.S.C. § 151(3)). In addition to his prison sentence, McAllister was ordered to pay $675,142.83, in restitution to the victims of his fraud and a special assessment of $1800.00. Upon his release from prison, McAllister will also serve a term of three years’ supervised release.
McAllister was indicted in 2010 by a federal grand jury. He had devised a scheme to defraud SunTrust Mortgage Co., Inc., in connection with the purchase of rental properties totaling $1.25 million in 2006. In addition, he devised a scheme to defraud the SunTrust Bank in connection with a $100,000 line of credit and making three false statements in connection with his subsequent bankruptcy petition in July 2009.
When you are in bad financial shape, you need good legal advice to keep you out of trouble. You also must discuss your financial situation completely and honestly with your attorney. There are many legal options to avoid criminal charges, but your attorney can only help you when he or she has all of the information.