A debtor who filed for Chapter 7 bankruptcy was indicted on three counts of mail fraud and three counts of bankruptcy fraud for making false statements in her Chapter 7 bankruptcy petition.
The details of the bankruptcy case:
Chapter 7 bankruptcy debtor L.S. McGee had two different Social Security numbers, one in her name and one using an alias. Because the debtor worked as a bookkeeper, she was able to use her position get paid unemployment insurance benefits under both names. When the debtor filed Chapter 7 bankruptcy she failed to disclose that she used an alias to collect unemployment insurance benefits over the previous six years and was indicted for bankruptcy fraud .
This is a warning to all debtors: DO NOT use multiple social security numbers, it is illegal. Some unscrupulous debt repair companies will encourage debtors to use multiple social security numbers as a way to create a “clean/new’ credit record; but what they don’t reveal is that the practice is illegal. Also, do not attempt to defraud the unemployment insurance system; it can land you in jail. If you have been duped into getting multiple social security numbers and/or using aliases to receive unemployment insurance benefits and you plan to file bankruptcy, please disclose this information to your bankruptcy attorney. Your bankruptcy attorney will be able to work with you to make the right moves to correct the situation.