A Palm Beach County couple was sentenced by Senior U.S. District Judge Kenneth L. Ryskamp in West Palm Beach for their participation in a bankruptcy fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Husband and wife Dr. Richard S. Krugman, 61, and Tamara B. Giordano, 54, each previously pled guilty to one count of bankruptcy fraud, in violation of Title 18, United States Code, Section 152. Krugman and Giordano were each sentenced to one year and one day in prison and ordered to pay restitution in the amount of $27,294.35.

According to court documents and information presented during the sentencing hearing, Krugman and Giordano were the owners of a multi-million-dollar health care company that took a downturn in 2006. On August 27, 2008, the two filed a joint personal bankruptcy petition in United States Bankruptcy Court in Palm Beach County, Florida before Judge Erik P. Kimball. Upon filing for bankruptcy, Krugman and Giordano were required, and knew that they were required, to report all assets in which they had any interest. At the time of filing, the defendants claimed they owed almost $3 million to creditors and had available assets worth less than $13,000.

An investigation revealed that Krugman and Giordano knowingly and fraudulently concealed and caused to be concealed property belonging to their bankruptcy estate. Specifically, Krugman and Giordano admitted concealing jewelry and other valuables, including a women’s gold and diamond Rolex watch, a gold ring with two carats of diamonds, diamond earrings, Royal Dalton china, Waterford crystal, silver, and two George Rodrigue “Blue Dog” lithographs, signed and numbered.

U.S. Attorney Wifredo A. Ferrer stated, “Criminal bankruptcy fraud can pose a threat to the economy and those who honestly abide by the bankruptcy laws. Those who hide their assets from the bankruptcy court to enrich themselves should know they may be prosecuted and imprisoned for their misdeeds.”

Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.