U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS - Earlier today, three individuals were indicted in three separate cases for bankruptcy fraud, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced.
“Our federal bankruptcy laws allow people who have overwhelming debt to obtain a fresh start,” Acting United States Attorney Porter explained. “Before their debts are eliminated, however, individuals who file bankruptcy are asked to be truthful about their assets and other matters that affect the bankruptcy case. When people conceal their assets and otherwise lie in bankruptcy proceedings, they are cheating their creditors and subverting the bankruptcy process. People who engage in this type of activity can expect to be prosecuted by my office no less than those persons who would use force to steal.”
The individuals indicted today are:Jenny L. Parks-Smith, 41, of Carterville, was charged with two counts of concealing assets and one count of fraudulently withholding records in a bankruptcy case. Parks-Smith’s chapter 13 bankruptcy was filed in the U.S. Bankruptcy Court in Benton. The indictment alleges that Parks-Smith concealed from the Bankruptcy Court a $17,000 settlement she received for a worker’s compensation claim. In addition, the indictment charges that Parks-Smith concealed a $2,478 federal tax refund that she received for the 2011 tax year. Parks-Smith is also charged with fraudulently withholding her 2011 tax returns.
“I am grateful to Acting U.S. Attorney Porter and the members of the Southern Illinois Bankruptcy Fraud Working Group for their strong commitment to combating bankruptcy fraud,” stated Nancy J. Gargula, the U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). “Today’s charges will go a long way toward protecting the integrity of the bankruptcy system.” The charges resulted, in part, from a referral by the U.S. Trustee. Assistance with the investigation was provided by members of the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind. and Peoria.
The investigations are being conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation (“FBI”). The cases are being prosecuted by Assistant United States Attorney Scott A. Verseman.
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