Former Plan Trustee Indicted for $1.1 Million Embezzlement from a Bankruptcy Estate and Tax Evasion
DAYTON, OH—A federal grand jury has charged Timothy Hock, 50, currently of Chicago, Illinois, with embezzlement from a bankruptcy state and tax evasion in an indictment returned in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the indictment returned yesterday.
According to the indictment, Hock, who was a Certified Public Accountant, was the controller for Domin-8 Enterprise Solutions, Inc. (Domin-8) when Domin-8 (and other related entities) filed for Chapter 11 bankruptcy in September 2009 in the Southern District of Ohio. Domin-8 was a Mason, Ohio-based company that provided software to companies that managed rental properties.
During the bankruptcy proceedings, Hock was initially appointed as the “Responsible Person” for Domin-8 and later appointed the Plan Trustee. As the Plan Trustee, Hock was responsible for handling the company’s liquidation and transfer of assets, completing claims reviews and making appropriate distributions to various creditors of the company.
Hock allegedly used his position to embezzle money belonging to the bankruptcy estate of Domin-8. Specifically, the indictment alleges that between approximately February 2010 and May 2013, Hock embezzled approximately $1.1 million.
Furthermore, the indictment alleges that Hock committed tax evasion on his 2011 federal income tax return by claiming that his taxable income for 2011 was $0.00, when in actuality his taxable income for the year was $433,625.
Hock was charged with one count of embezzling property that belonged to a bankruptcy estate, in violation of 18 U.S.C. § 153, and one count of tax evasion, in violation of 26 U.S.C. § 7201.
Both crimes are punishable by up to five years’ imprisonment.
“Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts those creditors who can ill-afford to take a loss on legitimate debts,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Embezzling funds belonging to a bankruptcy estate and not paying taxes is a gross violation of civic duty and deserves the punishment handed down today.”
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Alex R. Sistla, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.