Fenner and Birkley Convicted in $1M ‘Free Bankruptcy’ Scheme

INDIANAPOLIS- The grimy details of a fraudulent scheme that promised ‘free bankruptcy’ to financially distressed individuals while bilking them out of their cars have culminated in convictions for two alleged masterminds. Brian Fenner, 47, and Dennis Birkley, 63, were both found guilty on all counts by a federal jury following a grueling six-day trial.

Fenner and Birkley faced one count of conspiracy, fourteen counts of fraud, and three counts of money laundering for their roles in the $1 million scheme. U.S. Attorney Zachary A. Myers for the Southern District of Indiana branded them as ‘fraudsters’ who exploited the bankruptcy process to enrich themselves at others’ expense.

Myers emphasized that complex economic crimes are a federal priority, and these convictions prove that such schemes will not go unpunished. Nancy J. Gargula, U.S. Trustee for Indiana, echoed Myers’ sentiments, emphasizing the importance of holding those who abuse the bankruptcy system accountable.

According to court documents, Fenner’s ‘Sperro free bankruptcy program’ promised debtors a way out of their car loan debts by surrendering their vehicles to him in exchange for paying off bankruptcy attorney fees. However, instead of using the money as promised, Fenner used it to tow cars to Indianapolis at exorbitant fees, selling them under false pretenses and leaving lenders and individuals with no relief.

Birkley’s role was pivotal. He and his company, AMI Asset Management, acquired titles for the 100 vehicles obtained through the scheme, falsely claiming payments that never happened. The pair then sold these vehicles, splitting thousands in profit while leaving the debtors without cars and with debt they couldn’t discharge.

The investigation leading to Fenner’s and Birkley’s convictions was a collaborative effort by the FBI, Indiana State Police, U.S. Trustee Program, and the Southern Indiana Bankruptcy Fraud Task Force.