Ross Boydston, 57, of Creston, Nebraska, pleaded guilty this week to a federal charge of bankruptcy fraud . He admitted he was involved in a scheme that included selling livestock he pledged as collateral without telling the lender about proceeds received from the sale. He also failed to mention the transaction had occurred while in bankruptcy.
Boydston admitted to devising a scheme to defraud American Mortgage Company (AMC), with intentions of filing for Chapter 12 bankruptcy protection afterwards. Chapter 12 bankruptcy offers protection for family farmers and fisherman. This chapter is rare since it offers protection for a specific group of people. Over 1 million bankruptcy filings are completed annually with less than 1,000 being Chapter 12 cases.
Boydston had livestock he pledged as collateral to AMC. He later sold the livestock without telling the mortgage company. He also failed to remit proceeds to the mortgage lender when the transaction occurred. This was part of false statements made during his bankruptcy filing. He either presented false information or omitted details about the sale in order to keep the transaction and proceeds received concealed. Schedules submitted in bankruptcy did not list transfers and transactions related to the pledged livestock. Details were hidden two years after he filed for protection. When the meeting of the creditors occurred, he falsely testified no sales occurred with the livestock.
Boydston may face up to five years imprisonment. A supervised released of up to 3 years may follow his prison term. He may also be ordered to pay up to $250,000 fine for the offense. Sentencing is set for June 24, 2013.