Baileyville Man Sentenced for Bankruptcy Fraud

BANGOR, ME—United States Attorney Thomas E. Delahanty, II announced today that United State District Chief Judge John A. Woodcock, Jr. sentenced George F. Rayner, age 69, of Baileyville, Maine to one year and a day of imprisonment to be followed by one year of supervised release for bankruptcy fraud. On December 7, 2011, Rayner was found guilty of the offense by a jury.

According to evidence introduced at trial, Rayner and his wife filed for bankruptcy reorganization in May 2006. In his bankruptcy filings and testimony, he concealed from the Office of the United States Trustee and his creditors a savings bank account at The First NA, formerly known as the First National Bank of Bar Harbor; a deferred compensation retirement account, then worth about $150,000, from his employment as a police officer for Baileyville; and his entitlement to reimbursement for accrued, but unused, sick leave and vacation time benefits. He also failed to report a $97,000 lump-sum distribution from his retirement account and the payment by Baileyville of about $12,000 for his unused benefits in monthly operating reports that he was required to file with the Office of the United States Trustee.

The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with assistance from the Office of the United States Trustee.