A Scottsdale lawyer was fined nearly $1.4 million dollars and sentenced to 18 months in prison after pleading guilty to bankruptcy fraud. Scott Allan Maasen pleaded guilty to one count of concealment of assets in bankruptcy, a Class D felony.
His sentence includes three years of supervised release after the prison term. Maasen was also ordered to forfeit a residence in the exclusive Silverleaf neighborhood in north Scottsdale, according to court documents. The house near Thompson Peak Parkway and Horseshoe Canyon Drive is on the market for $1,595,000.
Maasen filed for bankruptcy in 2009 after he stopped making payments on a $1.5 million loan guaranteed by the Small Business Administration. He admitted to purchasing a $90,000 engagement ring for his fiancée during the bankruptcy proceedings and did not disclose it, according to court documents. He concealed the purchase by using a credit card and bank account in his father’s name.
Although, most people who file for bankruptcy are honest hardworking people, some individuals can be tempted to hide property and assets. Here are some examples that if caught, could be considered criminal:
- Failing to list all assets on the appropriate bankruptcy schedule;
- Concealing a property transfer prior to the bankruptcy filing (i.e. – giving a boat or car to a friend or family member);
- Creating a false document;
- Destroying or withholding documents, and
- Paying someone to help hide property from the court.
The consequences of engaging in such activities are harsh. Anyone who makes a knowingly false statement in association with a bankruptcy filing can be assessed fines up to $250,000 and receive up to 5 years in prison. Regardless of your occupation or status in life, if you are found guilty of bankruptcy fraud- you face real consequences, criminal prosecution and even jail time.
Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing.
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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 of 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 McMaken 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 McMaken website at www.miamibankruptcy.com
