Boerne Couple Busted in $800K Bankruptcy Fraud Scheme

Boerne resident Curtis Harold DeBerry, 56, is headed to federal prison for 24 months after pleading guilty to bankruptcy fraud, while his wife, Kathy Suzanne DeBerry, 54, will serve five years of federal probation. The couple’s deception unraveled in San Antonio federal court, where U.S. District Judge Xavier Rodriguez handed down the sentences last week, marking the end of a years-long scheme to cheat creditors and the justice system.

Curtis DeBerry filed for Chapter 7 Bankruptcy in the Western District of Texas on February 10, 2014, but concealed a fortune in assets. Between April 16, 2013, and August 18, 2014, the Boerne couple knowingly hid 100,000 shares of stock valued at $200,000 from bankruptcy trustees and creditors. The fraud allowed them to falsely appear insolvent while shielding significant wealth from public scrutiny and legal accountability.

As part of his sentence, Curtis DeBerry must pay $800,000 in restitution and will serve three years of supervised release upon completing his prison term. The financial penalty reflects the broader damage caused by the fraud, including investigative costs and losses to financial institutions. Kathy DeBerry, though spared prison, will now live under strict federal supervision with zero tolerance for further violations.

The FBI’s San Antonio Division led the investigation, peeling back layers of financial obfuscation to expose the DeBerrys’ hidden stock holdings. Special Agent in Charge Christopher Combs emphasized the agency’s commitment to rooting out financial fraud that undermines the integrity of the bankruptcy system. ‘These weren’t desperate people,’ said a source close to the case. ‘This was greed masked as hardship.’

Assistant U.S. Attorneys Erica Benites Giese and Christina Playton prosecuted the case for the federal government, securing convictions that send a message to would-be fraudsters in South Texas. U.S. Attorney Richard L. Durbin, Jr. reaffirmed that manipulating the bankruptcy system carries real consequences — prison, penalties, and permanent scrutiny.

The DeBerrys’ case is a textbook example of white-collar crime — quiet, calculated, and corrosive. While no guns or violence were involved, their actions eroded trust in financial institutions and cost creditors dearly. Now, Curtis DeBerry trades comfort for concrete floors, and both will carry the stigma of federal conviction for years to come.