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Former mayor accused of bankruptcy fraud

Minnesota residents in any type of business or situation might find themselves accused of fraud when it comes to a bankruptcy. Although sometimes difficult to prove, these allegations often include the concept that a person who filed for bankruptcy deliberately hid assets from the bankruptcy court. This would be done in theory to prevent losing valuable assets in a bankruptcy and could be alleged in a personal bankruptcy as well as a business bankruptcy.

The man who was for a mere five months the mayor of a small town in Minnesota today finds himself at the heart of an alleged bankruptcy fraud scheme for a bankruptcy filed on behalf of his company. His lawyer and his girlfriend are also accused of being involved in the alleged scheme to keep large sums of money and other assets out of the hands and eyes of creditors.

Reports suggest that the man cashed checks that were made out to other entities and took what amounted to hundreds of thousands of dollars for himself. He is also said to have established an offshore company and transferred some money to companies that may not even have existed or been legitimate businesses. The federal suit filed against him is a civil one and it is not known at this time if he will also face criminal charges.

When in situations like this, talking to an experienced attorney may well help people understand their options and make the best choices.

Source: Star Tribune, "Small-town Minnesota contractor or international fraud? Mayor resigns amid claims of hiding millions," John Reinan, April 15, 201

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