WASHINGTON, Oct. 18 (UPI) -- U.S. prosecutors have filed criminal charges against 78 people for alleged bankruptcy fraud and related offenses.
Deputy Attorney General Paul J. McNulty said Wednesday federal prosecutors charged individuals in 69 separate prosecutions in 36 judicial districts in a national project called "Operation Truth or Consequences."
The project includes charges filed against nine lawyers, two bankruptcy petition preparers and one former law enforcement officer. Charges include alleged concealment of more than $3 million in assets and the alleged use of false Social Security numbers and false identities.
"Today we send a clear message to those who abuse, for their own criminal financial gain, the bankruptcy system's promise of a fresh start to honest Americans," said McNulty. "A bankruptcy filing is often the last step of a series of criminal acts, including mortgage fraud, bank fraud, mail fraud, money laundering and government program fraud. Bankruptcy fraud is often the tip of the criminal iceberg, and that makes these prosecutions so important."
McNulty also announced the creation of a new Internet hotline for reporting suspected bankruptcy fraud to the Justice Department's U.S. Trustee Program.
