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Former Enron Executive Indicted on Bankruptcy Fraud Charges

Posted By Allmand Law Firm, PLLC || 17-Oct-2013

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A federal grand jury returned a 24-count indictment on former Enron Executive Jeffery Adam Shankman, 46, that included concealing assets with bankruptcy fraud. He is expected to make his appearance before a U.S magistrate judge upon turning himself in to authorities. His charges include purposely hiding assets from creditors and the bankruptcy trustee who was appointed to collect and dispose them.

When debtors file bankruptcy they are required to disclose all details about their finances and assets. This includes completing required documents in an honest manner. The statements and schedules debtors complete include details about current income, recent payments made, liabilities, anticipated payments, and so on.

When documents are signed they are certified under penalty of perjury; in other words the debtor claims the information they provided was true and correct. This information is important as it helps the bankruptcy court assess your circumstances to determine a fair outcome. Debtors are also required to detail information about their creditors. This aspect is what gives creditors a fair opportunity to participate in the proceedings.

Shankman worked at Enron until its collapse in 2001 as head of Global Markets Division and the Art Committee of Enron. Shankman filed Chapter 7 bankruptcy in fall 2008. He is accused of concealing, transferring and selling assets such as jewelry, fine art and other assets without consent, approval or knowledge of the bankruptcy court or his trustee. The value of the assets in question was close to $1 million.

If convicted he faces a possible $250,000 fine and up to five years in prison for each count.

Reference: http://www.fbi.gov/houston/press-releases/2013/ex-enron-executive-indicted-on-bankruptcy-charges

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