Virginia Woman Sentenced to Six Months in Jail for Bankruptcy Fraud
Conviction is Fourth in Past 20 Months for Local Task Force
|U.S. Attorney’s Office December 20, 2012|
LYNCHBURG, VA—A Crewe, Virginia woman who pleaded guilty in September to charges related to bankruptcy fraud was sentenced this morning in the United States District Court for the Western District of Virginia in Lynchburg.
Sally Marie Jones, 56, of Crewe, Virginia, waived her right to be indicted in September and pleaded guilty to one count of bankruptcy fraud. The case was brought as part of an investigation by the Bankruptcy Fraud Task Force for the Western District of Virginia. The conviction is the task force’s fourth in the past 20 months.
Today in District Court, Jones was sentenced to six months’ incarceration and two years of supervised release thereafter.
“When people provide false information to bankruptcy courts, this office will hold them accountable,” United States Attorney Timothy J. Heaphy said today. “Bankruptcy fraud is a serious crime with real consequences, which compels a serious law enforcement response.”
According to evidence presented by Assistant United States Attorney Daniel Bubar, Jones filed for bankruptcy in the Eastern District of Virginia twice between June 18, 2008 and June 8, 2009. Both times she filed, the defendant listed a different Social Security number and address. On July 23, 2009, the Bankruptcy Court for the Eastern District of Virginia banned Jones from filing bankruptcy for two years in any United States Bankruptcy Court.
Despite the two-year ban, Jones filed Chapter 13 bankruptcy in the Lynchburg Division of the Western District of Virginia on December 14, 2009, using a false Social Security number and the address of 3470 Candlers Mountain Road, Lynchburg. No such address exists.
According to evidence, when a creditor made a motion to dismiss her bankruptcy claim, Jones admitted that the only reason she filed bankruptcy was to enjoy the protection of the automatic stay to avoid foreclosures.
This case was investigated by the Bankruptcy Fraud Task Force for the Western District of Virginia, which consists of agents from the Internal Revenue Service, the Federal Bureau of Investigation, United States Trustee’s Office, and the United States Attorney’s Office for the Western District of Virginia. The case is being prosecuted by Assistant United States Attorney Daniel Bubar.