ELDORADO, IL (KFVS) - A couple from Eldorado, Illinois pleaded guilty on Thursday, June 5 to bankruptcy fraud, according to U.S. Attorney for the Southern Dist. of Illinois Stephen R. Wigginton.
Lucy J. McGill, 62, pleaded guilty to two counts of making false statements under penalty of perjury in a bankruptcy case, three counts of making false statements under oath in a bankruptcy case and one count of falsifying records in a bankruptcy case.
McGill's husband, Gary G. McGill, 69, pleaded guilty to two counts of making false statements under penalty of perjury in a bankruptcy case and two counts of making false statements under oath in a bankruptcy case.
The McGills filed a chapter 7 bankruptcy case on February 25, 2009. The case was filed in the U.S. Bankruptcy Court in Benton, Illinois.
Federal law requires that debtors who file for bankruptcy must disclose all of their assets. In addition, debtors are required to disclose certain financial transactions that they conducted before filing bankruptcy. The purpose of these disclosures is to ensure that all available funds can be collected to pay the creditors as much as possible on the amounts they are owed.
According to Wigginton, in pleading guilty on Thursday, Lucy and Gary McGill both admitted that they lied on a Statement of Financial Affairs that they filed with the Bankruptcy Court. The McGills falsely stated that $22,000 in two accounts in Lucy McGill's name at SIU Credit Union belonged to Lucy McGill's sister. In fact, that $22,000 had recently been paid to Gary McGill in settlement of two lawsuits.
The McGills further admitted that they again lied on their Statement of Financial Affairs when they concealed the fact that they had recently given their son cash gifts totaling $6,800. The McGills continued to lie about these topics when they gave sworn testimony at a bankruptcy proceeding on April 3, 2009.
Wigginton said Lucy McGill also admitted that she created fake receipts, purportedly showing that the cash in the SIU Credit Union accounts belonged to her sister, and then provided those receipts to the attorney administering her bankruptcy case.
The McGills will be sentenced on October 2 at the United States District Court in Benton, Ill. The sentencing hearing will be conducted by U.S. Dist. Judge J. Phil Gilbert.
Each count of bankruptcy fraud is punishable by not more than five years' imprisonment, and/or a $250,000 find, and not more than three years of supervised release. The actual sentence will be determined by the court and will be guided by the U.S. Sentencing Guidelines.
The investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Scott A. Verseman.