East Amherst Man Arrested, Charged With 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 Marc Korn, 58, of Amherst, NY, was arrested and charged by criminal complaint with bankruptcy fraud. The charge carries 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 complaint, Korn made false statements under oath during a recent bankruptcy proceeding. In addition, the defendant is accused of failing to disclose assets transferred to another person in order to conceal those assets from the bankruptcy.

Korn made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions. The defendant is due back in court on December 2, 2014.

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. As a result of today’s complaint, a motion has filed to revoke the defendant’s bail on the previous charges.   

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.