Young Buck Hiding Income From Bankruptcy Court
Rapper Young Buck is facing bankruptcy troubles again. Under the agreement with his bankruptcy trustee, he is to report all performance and appearance fees; but according to the suspicions of the bankruptcy court he may have received fees and failed to report them to the bankruptcy trustee or his bankruptcy attorney.
"On or about June 11, the trustee became aware that debtor and/or one or more of his acquaintances arranged for performance or appearance fees to be wired directly into an unauthorized bank account...from which unauthorized payments were made prior to turning over such funds to the trustee," Burton's attorney wrote in court papers filed Monday.
In addition to showing up for questioning, Young Buck-whose real name is David Darnell Brown-must turn over such documents as a list of all of his bank accounts, copies of all bank statements and canceled checks and "detailed accounting" of all tour income and other compensation received from January on.
Young Buck, who filed for Chapter 11 bankruptcy after running into trouble with the IRS and other creditors, may face some stiff penalties or even a dismissal if it is found that he has been pocketing performance and appearance fees. Chapter 11 bankruptcy debtors, like Chapter 13 bankruptcy debtors must provide to the bankruptcy court a transparent account of their finances. If their income has increased they may need to pay more money to creditors and the bankruptcy trustee may have some say in how the additional income is spent. Also, creating "secret" bank accounts into which a debtor can funnel money outside of the bankruptcy court's view could be seen as bankruptcy fraud or at least an attempt to defraud your creditors. Hiding assets and income from the bankruptcy court is always risky business for the debtor.
(source: Blogs.wsj.com )