U.S. Attorney's Office
Western District of Louisiana
(318) 676-3641
May 22, 2014

Serial Bankruptcy Filer Sentenced to 18 Months in Prison for Lying During Bankruptcy Proceedings

SHREVEPORT, LA—United States Attorney Stephanie A. Finley announced today that Shelley R. Callahan, 49, of Clinton, Missouri, was sentenced by U.S. District Judge Donald Walter to 18 months in prison and three years of supervised release for making a false statement during a bankruptcy proceeding. She was also ordered to pay $21,990 in restitution.

After a three-day trial that ended on February 14, 2013, witness testimony and exhibits admitted into evidence established that Callahan filed for bankruptcy protection on August 26, 2010, her eighth bankruptcy filing in nine years. Callahan falsely stated that she had not given any gifts or made any payments to family members prior to filing for bankruptcy protection. In truth, Callahan received more than $55,000 for a personal injury claim eight months before her latest bankruptcy filing. Instead of paying her creditors, she provided gifts during the Christmas season and gambling trips to casinos to her family.

The U.S. Trustee’s Office and the FBI conducted the investigation. Assistant U.S. Attorney Cytheria Jernigan prosecuted the case.

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