U.S. v. Turner
- Summarized by Michael Pugh , Thompson, O'Brien, Kemp & Nasuti, PC
- 10 years 10 months ago
- D.C. Docket No. 1:10-cr-00171-CG-N-1; 11-10993
- The 11th Circuit Court of Appeals VACATED the conviction of one count of making false entries in a bankruptcy filing in violation of 18 U.S.C. 1519. The Court of Appeals held that because the Debtor/Defendant paid off his mortgage after the commencement of his bankruptcy case, no reasonable jury could have convicted him of answering Question 3, Subsection B to of the Statement of Financial Affairs untruthfully.
The 11th Circuit Court of Appeals AFFIRMED the conviction of one count of bankruptcy fraud in violation of 18 U.S.C. 152(1) and the remaining three counts of making false entries in his bankruptcy filings in violation of 18 U.S.C. 1519. The Court held that there was ample circumstantial evidence from which a reasonable jury could find that the Debtor/Defendant acted with the requisite intent under Sections 152(1) and 1519.
The Court of Appeals REMANDED for resentencing.
- Procedural context:
- A jury convicted the Debtor/Defendant of one county of bankruptcy fraud in violation of 18 U.S.C. 152(1) and four counts of making false entries in his bankruptcy filings with the intent to impede, obstruct or influence his bankruptcy case in violation of 18 U.S.C. 1519. The district court sentenced Debtor/Defendant to 27 months' imprisonment, followed by three years of supervised release, and ordered Debtor/Defendant to pay $28,500 in restitution and $500 in special assessments. The Debtor/Defendant appealed his convictions and sentence.
- The Debtor/Defendant received insurance proceeds pre-petition totaling $40,000 resulting from property damage. Days after receiving the insurance proceeds, the Debtor/Defendant filed a voluntary Chapter 13 bankruptcy petition. Three days after filing for bankruptcy, the Debtor/Defendant used $11,500 of the insurance proceeds to pay off his mortgage on the damaged property and deposited the remaining $28,500 into a business checking account to which the Debtor/Defendant was the only signatory. He also rented a safety deposit box.
Over the course of three days after depositing the $28,500 into his business banking account, the Debtor/Defendant withdrew $26,000 of the $28,500 he had deposited into the account. After each withdrawal, the Debtor/Defendant visited his safety deposit box.
When the Debtor/Defendant subsequently filed his bankruptcy schedules and Statement of Financial Affairs, he did not disclose the $40,000 payment he received, his interest in a business and his control over the business' checking account, the $28,500 he deposited into the that account, the $26,000 in cash withdrawals he made the week after filing for bankruptcy and the safety deposit box he rented.
- CARNES, MARTIN & JORDAN
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