Feds: Worcester Co. family charged in bankruptcy fraud case
BERLIN, Md. - A Berlin family is facing time in prison and over $200,000 in fines after authorities say they were charged with federal conspiracy and fraud offenses.
The United States Department of Justice for the District of Maryland says on Tuesday, 66-year-old Patricia Mulford and 67-year-old Joseph Mulford, both of Berlin, and 62-year-old Maria Denise Gangler, of Essex, MD, were charged with conspiracy to commit bankruptcy fraud, bankruptcy fraud, and tax evasion.
The four-count indictment alleges that from July 2011 through November 2017, the Mulfords and Gangler (aka Aunt Denise) committed bankruptcy fraud by knowingly and fraudulently concealing their assets from their creditors and trustees in bankruptcy proceedings. Authorities report that concealed assets consisted primarily of proceeds from the sale of approximately $375,000 in foreign real estate, specifically their interests in a property at Sueno Escondido Estates, in Costa Rica. Federal authorities say the Mulfords and Gangler changed proceeds from the real estate sale into cash and stored it in a safe deposit box and bank accounts held in relatives' names.
According to the DOJ, the Mulfords also reinvested proceeds in a second property in Costa Rica and failed to give information regarding ownership of that property. Law enforcement says the defendants' bankruptcy fraud caused their creditors to suffer losses of more than $350,000. The Mulfords also allegedly concealed assets from the Internal Revenue Service (IRS) in order to avoid an outstanding tax debt. Officials report that beginning in 2009, they willfully attempted to evade paying taxes for the calendar year of 2009, and did so by concealing from the IRS gold and silver coins the Mulfords had purchased after liquidating their IRAs.
Federal authorities say Mulfords' bankruptcy fraud allowed them to avoid paying approximately $39,000 then due to the IRS in connection with taxes for 2009. The 66-year-old and 67-year-old also reportedly withheld the proceeds of the sale of real estate in Costa Rica for the IRS.
The U.S. Department of Justice reports that the Mulfords and Gangler face a maximum sentence of five years in prison and fines of up to $250,000 for the conspiracy, bankruptcy fraud, and tax evasion offenses.
Article From:- http://www.wmdt.com