Description: Cedar Rapids, Iowa criminal defense lawyer represented the Defendant charged with bankruptcy fraud.

Leisinger admitted that, on December 8, 2022, she filed for Chapter 7 bankruptcy in the United States District Court for the Northern District of Iowa, by means of sworn court filings. When a debtor files a petition seeking protection from creditors under the bankruptcy laws, a “bankruptcy estate” is created, which is comprised of all property belonging to the debtor, wherever located, and by whomever held, as of the time of the filing of the bankruptcy case, and debtors must truthfully disclose their assets to the court in court filings. Leisinger admitted she fraudulently concealed that she was in possession of a $147,969.28 inheritance check on the date she filed for Chapter 7 bankruptcy. An attorney had handed Leisinger the check on December 1, 2022, but Leisinger did not immediately cash it. On December 16, 2022, Leisinger cashed the check into an account she controlled at a local credit union. As a part of her scheme, Leisinger attempted to discharge over $65,000 in debts that she owed to her creditors but keep her entire inheritance. Ultimately, the United States Trustee discovered Leisinger’s scheme, she waived her Chapter 7 discharge, her bankruptcy was dismissed, her inheritance was applied to repay her creditors, and she was prosecuted federally.

Leisinger was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Leisinger was sentenced to two months’ imprisonment. Leisinger was also ordered to repay $5,000 for her court-appointed attorney fees. She must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.

Leisinger was released on the bond previously set and is to surrender to the United States Marshal in January 2024.

The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Federal Bureau of Investigation. The Office of the U.S. Trustee referred and assisted in the investigation.

18 U.S.C. 1521 provides:

A person who—
(1) knowingly and fraudulently conceals from a custodian, trustee, marshal, or other officer of the court charged with the control or custody of property, or, in connection with a case under title 11, from creditors or the United States Trustee, any property belonging to the estate of a debtor;
(2) knowingly and fraudulently makes a false oath or account in or in relation to any case under title 11;
(3) knowingly and fraudulently makes a false declaration, certificate, verification, or statement under penalty of perjury as permitted under section 1746 of title 28, in or in relation to any case under title 11;
(4) knowingly and fraudulently presents any false claim for proof against the estate of a debtor, or uses any such claim in any case under title 11, in a personal capacity or as or through an agent, proxy, or attorney;
(5) knowingly and fraudulently receives any material amount of property from a debtor after the filing of a case under title 11, with intent to defeat the provisions of title 11;
(6) knowingly and fraudulently gives, offers, receives, or attempts to obtain any money or property, remuneration, compensation, reward, advantage, or promise thereof for acting or forbearing to act in any case under title 11;
(7) in a personal capacity or as an agent or officer of any person or corporation, in contemplation of a case under title 11 by or against the person or any other person or corporation, or with intent to defeat the provisions of title 11, knowingly and fraudulently transfers or conceals any of his property or the property of such other person or corporation;
(8) after the filing of a case under title 11 or in contemplation thereof, knowingly and fraudulently conceals, destroys, mutilates, falsifies, or makes a false entry in any recorded information (including books, documents, records, and papers) relating to the property or financial affairs of a debtor; or
(9) after the filing of a case under title 11, knowingly and fraudulently withholds from a custodian, trustee, marshal, or other officer of the court or a United States Trustee entitled to its possession, any recorded information (including books, documents, records, and papers) relating to the property or financial affairs of a debtor,

shall be fined under this title, imprisoned not more than 5 years, or both.

Outcome: Defendant was sentenced to 2 months imprisonment. 2 years supervised release. $100 assessment.

Plaintiff's Experts:

Defendant's Experts:

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