Kevin O. Johnson, also known as “K.O. Johnson,” was indicted by a federal grand jury on charges of bankruptcy fraud. He is charged with four counts of bankruptcy fraud and four counts of making a false oath in a bankruptcy case under penalty of perjury, fraudulently withholding information pertinent to the case and concealing assets.
Johnson, whose practice included bankruptcy law, filed a Chapter 7 Bankruptcy Petition on Dec. 31, 2011. The indictment alleges that Johnson fraudulently concealed property from the bankruptcy trustee, creditors, and the United States Trustee, including complete information of about $1,790,000 of account receivables owed to Johnson by his present and former clients.
The indictment also charges Johnson with the following:
- Failing to comply with a court order requiring him to turn over all proceeds from the collection of account receivables;
- Having directed clients not to send any payments to the Bankruptcy Trustee and asking clients to sign misleading documents about the nature of payments they made, despite Johnson knowing that all future account receivable payments were required to be made to the Trustee;
- Making false statements concerning his security interests and liens on the $1,790,000 of account receivables;
- Removing invoices and fee agreements from client files;
- Obstructing the Bankruptcy Trustee by omitting a bank account used to deposit a check received in payment of an account receivable owed to Johnson at the time he filed for bankruptcy.
Each charge in this case carries a maximum penalty of up to five years in prison, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The Court may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years.
Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to conceal assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you list in a subsequent bankruptcy filing. In addition, you can face serious fines, even jail time.
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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
