A federal jury recently convicted 42 year old Ricardo O. Curry of Randallstown, Maryland of four counts of bankruptcy fraud, two counts of filing a false tax return, one count of false testimony under oath during bankruptcy proceedings and four counts of falsifying bankruptcy records. According to county officials, Curry failed to report more than $740,000 of income and assets while attempting to fraudulently discharge over $1 million in debt through bankruptcy.
Curry worked for a North Carolina corporation, Peerless Real Estate Services Inc. that oversees property sales throughout the state. Curry would recruit investors and receive referral fees. He recruited 12 investors to purchase at least 23 lots during 2005, 2006, and 2007. For each year, Curry earned fees of over $40,000, $43,000, and $330,000 respectively. He reported fees earned as a sales representative for a pharmaceutical company on his tax returns for the same years, yet he didn’t report the referral fees of more than $400,000.
In March 2009, Curry filed for Chapter 13 bankruptcy in Maryland. When he filed, he reported income earned as a sales representative for a pharmaceutical company for 2005, 2006, and 2007, but not the referral fees from Peerless Services. He had ownership interest from a home that totaled roughly $325,000 that he also failed to report when he filed. In July 2009, he filed an Amended Statement of Financial Affairs and again, failed to report over $400,000 in referral fees from Peerless Services.
When he met with creditors in October 2009 during bankruptcy proceedings, he falsely stated while under oath that all assets were listed, when he knew the referral fees and home ownership interest was not included. He also failed to provide his trustee with documentation regarding his hidden income. When Curry tried to discharge debt in April 2010 it was denied.
Curry faces up to 20 years in prison on each count of falsifying bankruptcy records, up to 5 years in prison on each count of bankruptcy fraud and up to 3 years in prison for each false tax counts. Curry will be sentenced in June 2013.