OC Business Bankruptcy Fraud Lawyer
If you have been accused of federal business bankruptcy fraud, it could put your business's future and reputation in jeopardy and possibly lead to federal imprisonment if you are convicted. These charges are not levied lightly. If someone is accused of bankruptcy fraud, it is because the federal authorities have traced a common pattern in the business's bankruptcy profile.
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Someone commits business bankruptcy fraud when their intentions for filing bankruptcy are different from sincere need and an honest attempt to pay back creditors. There are five common patterns that lead to business bankruptcy fraud charges:
A bust out refers to a situation wherein the purpose of setting up a company was always to see it fail and file for bankruptcy for the personal gain of the owner. This can occur when a business owner knowingly buys merchandise from creditors, sells the goods for cash and allows the business to reach the point of bankruptcy without any attempts to pay back creditors. The spirit of this offense involves knowingly borrowing from creditors under the guise of the business but only for the personal gain of the business owner.
This occurs when those within a company knowingly deplete the assets of the company over a period of time, and then file for business bankruptcy under Chapter 11. The purpose for this would be to use the business assets for personal gain, driving the business into the hole and then walking away from it without paying back creditors. Someone who "bleeds out" a company often keeps transactions and files intentionally complex in order to deter scrutiny while depleting the assets so that no one is able to trace it back to them.
This involves the deception of business investors. If someone commits the pyramid scheme, they will likely promise investors a higher interest rate on their investments with no intentions of paying back debts and then filing for Chapter 11, which allows them to continue their plight.
A petition mill occurs when a group poses as a legal consulting service that alleges to help troubled tenants avoid eviction. The reality that occurs is that the "petition mill" simply files bankruptcy on behalf of the tenant without their knowledge, dragging out their case as long as possible in order to build up a large bill for the tenant, ruining their credit score.
Business healthcare fraud occurs when a company offers services to employees without any intention of providing the services or paying the claims for the employees sign up.
Like any serious white collar offense, business bankruptcy fraud can only be proven with evidence, beyond reasonable doubt, of malicious intent on behalf of the accused. Because charges are levied based on suspicion and patterns, the prosecution must be able to prove that the defendant intended to commit fraud for personal gain by filing for bankruptcy. This, with the help of the right Orange County defense attorney, can prove a difficult task for the accusers.
When you are investigated or charged with business bankruptcy fraud, it is important to contact an OC federal defense attorney right away. While the opposition is building a case against you, Law Office of Michael L. Guisti can begin working on your case for defense by investigating the matter ourselves.
Let us defend your future and your business from this accusation. Contact Law Office of Michael L. Guisti at (714) 530-9690 today.
Whether you're facing a felony or a misdemeanor, don't risk a conviction. Act quickly to redeem your reputation and protect your record by consulting with our Orange County criminal defense lawyer. Call today to schedule your free consultation.