East Amherst Man Indicted For Bankruptcy Fraud

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051

BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Marc Korn, 58, of Amherst, NY, with bankruptcy fraud. The charges carry a maximum sentence of five years and a fine of $250,000.

Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the indictment, Korn made false statements under oath during a bankruptcy proceeding concerning the ownership of safe deposit boxes. The indictment further states that the defendant failed to disclose life insurance policies transferred to another person, and concealed assets from his creditors.

Korn was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.

Korn is currently under federal indictment on charges of wire fraud, bank fraud, and failure to pay over employment taxes, as well as making false statements to law enforcement which carry a maximum penalty of 30 years in prison, a fine of $1,000,000 or both. A trial on those charges is scheduled to begin on May 20, 2015.

Today’s arrest is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.