Abby Lee Miller, famously known for her reality television series Dance Moms, has been indicted on bankruptcy fraud charges by a federal grand jury in Pittsburgh, Pennsylvania.
According to the United States Attorney’s Office, she hid approximately $755,000 after making false claims with regard to her income.
In a recent statement, the U.S. Attorney overseeing the case said:
“Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court.”
At this time, Miller has been charged with numerous crimes including: bankruptcy fraud, concealment of bankruptcy assets, and false bankruptcy declarations.
While the United States Attorney’s Office feels that Miller is guilty of these crimes, her legal team is taking a different stance. Her attorney noted that she entered bankruptcy as a means of saving her dance studio. Furthermore, he said that “there is no loss to any of her creditors.”
These are serious charges, and Miller could be punished with a $250,000 fine and up to five years in prison for each count.
Her arraignment will take place in November in U.S. District Court in Pittsburgh.
When it comes to bankruptcy, there are things that should and should not be done. The process can become even more challenging when the person filing was previously (or is currently) a high earning individual.
Although the court system must do whatever it takes to protect the bankruptcy process, there are times when this goes too far. As a result, a person who honestly filed for bankruptcy could find themselves in trouble with the law and wondering what the future holds.
Source: People, “Dance Moms Star Abby Lee Miller Indicted on Fraud Charges After Allegedly Hiding Thousands from Bankruptcy Court,” accessed Oct. 15, 2015