Expediency is often the road to disaster, or at least that was the case for Olusola Idowu, who was convicted of fraudulently obtaining more than $1.1 million for her home and bankruptcy fraud.
Olusola Idowu, 57, was convicted on two counts of wire fraud and one count each of bankruptcy fraud, making false statements in a bankruptcy proceeding, filing a false tax return and failing to file a corporate tax return, according to the verdict announced by U.S. Attorney Rod J. Rosenstein and Special Agent in Charge C. Andre Martin of the Internal Revenue Service.
After filing for bankruptcy in 2004, Idowu falsely testified in bankruptcy court that she filed corporate tax returns for 2001 thru 2003. She also made false statements about her income to mortgage lenders to successfully convince them to make loans totaling well over $1 million. Idowu's wire and bankruptcy fraud convictions could land her behind bars for several years.
Her wire fraud convictions carry a maximum penalty of 30 years in prison and her bankruptcy fraud conviction could land her in jail for five years. Not to mention the fact that she won't be able to use bankruptcy to discharge her debts and get a fresh start.
For debtors considering fudging the truth in bankruptcy, please don't do it. Even if you misrepresented your financial state to secure mortgage loans during the housing boom do not lie about it in bankruptcy so that you can hide the truth, it will only compound your legal troubles. It is always better to remain 100% percent honest during bankruptcy because failure to do can carry stiff penalties plus time behind bars.