Indianapolis White Collar Crimes Lawyers

Bank & Bankruptcy Fraud Attorneys

The bankruptcy system was designed to give those in significant amounts of debt a chance at a fresh financial start. As with many other systems involving finances, people have discovered ways to take advantage of these systems for financial gain or profit.  Any case where an individual or company conceals assets or makes false statements in a bankruptcy proceeding is considered to be bankruptcy fraud, and violators will be subject to criminal charges.  At Schembs Sweeney Law, we provide representation to those charged with bank or bankruptcy fraud, and an Indianapolis Criminal Defense Attorney from our firm will do everything in their power to handle to have the charges against you reduced or dismissed.       

Some common bankruptcy fraud schemes occurring in Indianapolis include:

Bustouts
A bustout is conducted by a company that is set up to fail from the outset. The operator obtains merchandise from creditors, disposes of the goods (usually for cash) and does not pay suppliers. A bustout can also be conducted by buying an existing company and using that company’s good credit to obtain goods, without the intent to pay, and then disposing of the goods immediately for cash.

Bleedouts
A bleedout is similar to a bustout. It usually involves an existing company and a depletion of assets by insiders over a relatively long period of time. There are concealed assets or false statements in this situation. Long-standing owners or corporate raiders can be perpetrators of the crime.

Ponzi Schemes (Investor Fraud)
A Ponzi scheme (pyramid) invoices soliciting investments by promising interest rates well above the market rate. Early investors recover their investments with the promised rate of return and encourage others to invest. As the pyramid begins to crumble, investors are unable to recover their original investments and interest is no longer paid. Chapter 11 cases are filed to allow the debtor to continue the scheme. When the scheme collapses before bankruptcy, either a voluntary or involuntary case is filed.  The essence of these schemes is a promise of a very high return on an investment. Once it fails, many investors are reluctant to complain because they realize they have been duped. lt is important to identify and contact the investors because they generally are excellent witnesses.

If you or someone you care about is facing a bank or bankruptcy fraud charge, contact an Indianapolis Criminal Defense Lawyer at Schembs Sweeney Law today for help!