Eldorado couple sentenced for bankruptcy fraud - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Eldorado couple sentenced for bankruptcy fraud

ELDORADO, IL (KFVS) -

A couple from Eldorado, Illinois has been sentenced for bankruptcy fraud.

Lucy J. McGill, 62, and Gary G. McGill, 69, were each sentenced to two years of probation with four months of home confinement on electronic monitoring, 20 hours of public service and ordered to pay fines of $1,000 each.

The sentencing hearings were conducted by U.S. District Judge J. Phil Gilbert.

According to the U.S. States Attorney for the Southern District of Illinois, Stephen R. Wigginton, the sentencing follows the McGills' guilty pleas in federal court in Benton, Ill. on June 5.

Lucy McGill 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.

Gary McGill 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 chapter 7 bankruptcy case on February 25, 2009 in the U.S. Bankruptcy Court in Benton, Ill.

According to Wigginton, 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 prior to 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.

In their guilty pleas, 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.

Wigginton said the McGills continued to lie about these topics when they gave sworn testimony at a bankruptcy proceeding on April 3, 2009.

Finally, 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 the provided those receipts to the attorney administering her bankruptcy case.

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