Debt Restructuring Fraud

DEBT RESTRUCTURING fraud is a method whereby an individual or an officer of a corporation with outstanding debt obligations knowingly and fraudulently conceals or transfers assets belonging to the estate of the debtor, prior to a Chapter 11 bankruptcy filing, with the intent to defraud creditors and avoid legitimate debts.

Debt restructuring fraud, referred to as fraudulent transfer or concealment, is defined within the bankruptcy fraud statute, codified at 18 U.S.C. §152, and states, “A person who in a personal capacity or as an agent or officer of any person or corporation, in contemplation of a case under Title 11 by or against the person or any other person or corporation, or with intent to defeat the provisions of[Page 246] Title 11, knowingly and fraudulently transfers ...