Michael A. Carr, Bankruptcy Fraud, Illinois 2023

Bankruptcy Fraud Lands Springfield Man Behind Bars

In a shocking case of abuse of the bankruptcy system, Michael A. Carr, 51, of St. James Court, Springfield, Ill., has been ordered to serve 10 months in federal prison for concealing assets and making false statements related to bankruptcy proceedings.

Carr, who pled guilty on Sept. 23, 2013, to filing a bankruptcy petition that concealed property and included false statements to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code, admitted to concealing ownership of a motorcycle, sport utility vehicle, four all-terrain vehicles, and a pending insurance claim arising from the theft of a 1995 Harley-Davidson Softail motorcycle.

When he filed the petition in June 2010, Carr hid the true value of his assets, attempting to discharge his debts under the bankruptcy law. However, the scheme was uncovered by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10), who referred the case to the Central District of Illinois Bankruptcy Fraud Working Group.

The investigation was carried out by the FBI and the U.S. Postal Inspection Service, with Assistant U.S. Attorney Gregory K. Harris prosecuting the case. At sentencing on Oct. 27, 2014, U.S. District Judge Sue E. Myerscough ordered Carr to pay $7,750 in restitution and remain on supervised release for three years following completion of his prison sentence.

‘Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system,’ stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10). ‘I am grateful to U.S. Attorney Lewis and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.’

The U.S. Trustee Program, which oversees case administration and litigates to enforce the bankruptcy laws, has a strong presence in the region, with Region 10 headquartered in Indianapolis and additional offices in South Bend, Ind., and Peoria, Ill.

Carr, who was ordered to self-report to the federal Bureau of Prisons as directed by the U.S. Marshals Service, will now face the consequences of his actions. As the bankruptcy system continues to be a vital tool for individuals seeking relief from debt, cases like Carr’s serve as a stark reminder of the importance of honesty and transparency in the bankruptcy process.

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