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Bankruptcy Fraud

Another common federal offense involves bankruptcy fraud, which is akin to other forms of white-collar fraud. This type of fraud is executed when one hides assets or property that belongs to the filer's estate in a bankruptcy matter.

In most federal jurisdictions, a prosecutor must prove all of the following "beyond a reasonable doubt":

1. A bankruptcy proceeding existed

2. The assets or property belonged to the estate that is bankrupt

3. The defendant hid such property from the marshal, creditors, trustee, custodian or another individual responsible for managing the property

4. Assets were guarded "knowingly and fraudulently"

All of these elements must be proved by federal prosecutors in order to secure a conviction.


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