The federal government has caught Abby Lee Miller trying to electric slide past the law when she allegedly committed bankruptcy fraud. Twinkle Toes reportedly created secret bank accounts in an effort to hide more than $750,000 in earnings from her reality TV show, her dance studio, and clothing line.
Federal prosecutors out of Pittsburgh are ready to tango and made the announcement that they would be pursuing charges of bankruptcy fraud two weeks ago. The 20-count indictment accuses Miller of concocting a plan to fraud the court soon after she filed for bankruptcy back in 2010. The alleged scheme being that Miller would hide some of her earnings from the show and its spinoff endeavors during 2012 and 2013 in order to get better restructuring terms for the Chapter 11.
U.S. Attorney David J. Hickton said of the case: “Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court.”
Miller faces arraignment on November 5. If convicted, she could be looking at up to five years and $250,000 fines for each of the 20 counts, but the prospect of waltzing into prison doesn’t seem to intimidate her as she continues to update her social media with news and photos as she films season six of Dance Moms.
Bankruptcy can be a lifesaving tool that helps individuals and families to breathe free and move forward with their lives. Unfortunately, people that try to fraud and abuse the system can “threaten the integrity of the bankruptcy process and the public’s trust in it. We take our responsibility to pursue allegations of bankruptcy fraud seriously,” according to Scott Smith, a spokesperson for the FBI.
Garland & Mason, L.L.C. – New Jersey bankruptcy lawyers