Agent Admits Making a False Statement to Bank

Allison Tussey —  March 18, 2011 — 2 Comments

Darlene M. Adkins, 65, Springfield, Illinois, a real estate agent, entered pleas of guilty to concealing assets in a bankruptcy proceeding and making a false statement to a bank. Sentencing is scheduled for July 18, 2011.

In court documents and during the hearing before U.S. Magistrate Judge Byron G. Cudmore, Adkins admitted that on May 15, 2006, she submitted false income information on a loan application to a local bank to increase her home equity line of credit. To influence the bank to approve a $40,000 loan extension, Adkins falsely stated that her gross monthly wages, salary, and commissions were $7,000, when Adkins had no income for February, March, April, or May of 2006, and her total income to date for 2006 was $1,610. In a Chapter 7 Bankruptcy Petition, filed on May 10, 2006, five days prior to the loan application, Adkins stated that her income to date was $1,610. Adkins further admitted that when she filed the Chapter 7 Bankruptcy Petition, she concealed her receipt of $166,884.51, the amount paid by an insurance company to replace the contents of her house which were damaged by fire in June 2005.

The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) and an investigation by the Federal Bureau of Investigation in coordination with the Central Illinois Bankruptcy Fraud Working Group. The Bankruptcy Fraud Working Group includes representatives of the U.S. Attorney’s Office for the Central District of Illinois, U.S. Trustee’s Office for Region 10, Federal Bureau of Investigation, Secret Service, U.S. Postal Inspection Service, the Criminal Investigation Division of the Internal Revenue Service, the Department of Health and Human Services, and the Department of Housing and Urban Development. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.

The statutory penalty for making a false statement on a loan application is up to 30 years in prison and fines up to $1,000,000; for concealing assets, the maximum statutory penalty is five years in prison and fines of up to $250,000. Final sentences are determined by the court. In imposing sentence, the court may consider federal sentencing guidelines, which include a defendant’s criminal history, the amount of loss, and other applicable factors.

The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.

Jim Lewis, U.S. Attorney for the Central District of Illinois announced the guilty plea.

 

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Allison Tussey

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2 responses to Agent Admits Making a False Statement to Bank

  1. Baltimore birth injury lawyer March 21, 2011 at 5:39 am

    People should not try to hide their assets…it obviously does not work…

  2. Why does it take so long to go after regular people who commit BK fraud..they filed in 06..yet Theresa from the Housewives of New Jersey or whatever had a court date set less than a year after they filed BK for fraud..

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