Minh-Vu Hoang who filed for Chapter 11 bankruptcy and submitted false information, has pleaded guilty of attempting to defraud the IRS and the bankruptcy system when hiding profits earned from the purchase and sale of foreclosures.
On May 10, 2005, Minh-Vu Hoang filed for a voluntary petition under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Maryland. On May 27, 2005, Minh-Vu Hoang filed several false schedules and a false Statement of Financial Affairs with the Bankruptcy Court, in support of her petition. In her Schedules, Minh-Vu Hoang reported a financial interest in only six properties, knowing that she had an interest in other properties, and further reported income in 2003 and 2004 of only $96,000 each year, knowing that her income for those years was substantially higher. She also failed to report her interest in various bank accounts.
The government claims that the tax loss and the loss from the bankruptcy fraud far exceeds $2.5 million; but the defendants insist that is it far less. Once the total loss is determined, Minh-Vu will be sentenced. Minh-Vu Hoang faces up to five years in prison for bankruptcy fraud and defrauding the IRS.
It is important that debtors resist the temptation to hide assets during bankruptcy. It is unnecessary and illegal. There are many exemptions available that will protect a debtor's assets in bankruptcy; but you must work with a competent bankruptcy attorney who can help you understand and make full use of those bankruptcy exemptions. Bankruptcy exemptions, not fraud are what will get you on the road to a fresh financial start after bankruptcy.