Bankruptcy Fraud-Rhode Island

Richard Cecca, of Plymouth, Massachusetts, was sentenced to eight months in federal prison and eight months in home confinement for lying in his bankruptcy filings. ^[1]He pleaded guilty in October to six counts of bankruptcy fraud. ^[2] Cecca admitted lying about real estate assets during a 2001 bankruptcy hearing; federal prosecutors say he concealed assets totaling between $400,000 and one million dollars. ^[3]

Bankruptcy fraud is defined as "[a] fraudulent act connected to a bankruptcy case; esp[ecially] any of several proscribed acts performed knowingly and fraudulently in a bankruptcy case, such as concealing assets or destroying, withholding, or falsifying documents in an effort to defeat bankruptcy-code provisions." ^[4]

The pertinent part of the bankruptcy fraud statute, 18 U.S.C. § 152, Mr. Cecca is charged with is: knowingly and fraudulently concealing any property belonging to the estate of a debtor from a custodian, trustee, marshal, or other officer of the court charged with the control or custody of property, in connection with a case under title 11, from creditors or the United States Trustee.^[5]

The punishment is a fine, imprisonment for not more than 5 years, or both.[6]

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[1] Man Sentenced to Prison for Bankruptcy Fraud, Providence Eyewitness News, February 3, 2007.
[2] Id.
[3] Id.
[4] Black’s Law Dictionary 686 (8th ed. 2005)
[5] 18 U.S.C. § 152(1) (2005).
[6] Id. § 152.