Utah Couple Sentenced for Bank Fraud and Bankruptcy Fraud

COEUR  D'ALENE – Cortney S. Valentine, 40, and Nicolette P. Valentine, 37, husband and wife, both of Liberty, Utah, were sentenced Tuesday for bank fraud, false declaration under penalty of perjury and concealment of assets in connection with a bankruptcy case, Acting U.S. Attorney Rafael Gonzalez announced. Senior U.S. District Judge Edward J. Lodge sentenced Cortney Valentine to 40 months in prison, to be followed by five years of supervised release and ordered restitution payable at a later date. Judge Lodge sentenced Nicolette Valentine to time served, to be followed by five years of supervised release, and 200 hours of community service and ordered restitution payable at a later date. Cortney Valentine pleaded guilty on November 1, 2016, and Nicolette Valentine pleaded guilty on June 23, 2016.

According to Cortney Valentine’s plea agreement, he defrauded U.S. Bank when he made material false statements causing U.S. Bank to lend him $362,000. Later, Valentine and his wife, Nicolette, filed for relief under bankruptcy separately in different states. In November 2011, Cortney Valentine contracted to sell a home to a third party for $1,150,000. Cortney Valentine should have reported to the bankruptcy court any proceeds from the sale of the home. Instead, he used the money to support himself. Cortney Valentine made numerous false statements on the bankruptcy filings and concealed the funds he received from the third party purchaser.

According to Nicolette Valentine’s plea agreement, she defrauded Mountain West Bank when she made material false statements causing Mountain West Bank to lend her $43,766.27 to refinance a truck. Instead of paying off the existing truck loan so that Mountain West Bank could obtain clear title to the collateral, Nicolette Valentine deposited the proceeds into her bank account and used the money for living expenses. In May 2012, Nicolette Valentine filed for bankruptcy. During her bankruptcy proceedings, while under oath, Nicolette Valentine made material false statements when questioned about various matters under the supervision of the bankruptcy court.

The case was investigated by Federal Bureau of Investigation.