The Allmand Law Firm, PLLC Difference

Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

California Business Man Convicted of 15 Counts of Bankruptcy Fraud

Posted By Allmand Law Firm, PLLC || 26-Jul-2013

A California business man and an attorney were recently convicted in a multimillion dollar bankruptcy fraud and money laundering scheme that carried on for a number of years. Steven Zinnel, 49, of Gold River and attorney Derian Eidson, 49, of Yorba Linda, will both be sentenced later this year their roles in the scheme that included concealing funds and using different names of corporations in order to keep their transactions secret.

Zinnel was convicted of 15 counts of bankruptcy fraud and money laundering. Eidson was convicted of one count of attempting to commit money laundering and one count of conspiring. In 2001, Zinnel was involved in child support litigation with his ex-wife. He mentioned to her that he would file a personal bankruptcy. At the time, he was in control over several corporations related to electrical infrastructure before and after he filed bankruptcy.

Zinnel had several properties that he put into the name of other people to conceal it. When he filed, he claimed to have assets at roughly $843,000, secured debt at just over $2 million, and unsecured debts at over $4 million. He was successful in concealing his assets when he filed and his case was closed with debts being discharged. After the case was closed, Zinnel began laundering funds to himself through Eidson's company.

Zinnel had invested hundreds of thousands into a company he was being paid distribution as an owner for years. During this time, Zinnel used the names of other corporations and even forged his signature with one, to disguise property control to direct the funds to other accounts. Eidson had authority through Zinnel over her company bank account, which allowed him to use it for personal expenses.

Zinnel was later taken into custody and along with Eidson, were indicted by a federal jury that included an 11-day trial.

Reference:

http://www.bizjournals.com/sacramento/news/2013/07/17/gold-river-attorney-zinnel-convicted.html

Categories: Bankruptcy Fraud
Blog Home