Cortney S. Valentine, 39, of Liberty, Utah, is headed for a federal prison cell after pleading guilty to bank fraud and orchestrating a brazen concealment of assets during a bankruptcy case. The Coeur d’Alene resident admitted to swindling U.S. Bank out of $362,000 by submitting false financial statements, setting off a chain of deception that stretched deep into the federal court system.
The scheme unraveled as creditors closed in on Valentine over mounting debts and looming property foreclosures. Rather than face the music, he and his wife, Nicolette P. Valentine, 37, filed separate bankruptcy petitions in different states—an immediate red flag. While claiming financial ruin, Valentine secretly sold a home in November 2011 for $1,150,000 and pocketed the proceeds, refusing to disclose the windfall to the bankruptcy court.
Instead of reporting the sale, Valentine funneled the $1.15 million to fund his lifestyle, directly violating federal bankruptcy laws. He filed documents riddled with false declarations under penalty of perjury, lying about income, assets, and transactions. The court, misled by his fabricated disclosures, was unable to recover funds rightfully owed to creditors.
The U.S. Attorney’s Office, led by Wendy J. Olson, exposed the fraud after a federal grand jury indicted Valentine on February 18, 2015. The FBI launched a full investigation, tracing the hidden flow of cash and exposing the coordinated effort between Cortney and Nicolette to defraud both lenders and the judicial system.
Nicolette P. Valentine already pleaded guilty on June 23, 2016, to bank fraud, concealment of assets, and making false statements under oath. She awaits sentencing on December 6, 2016, before Senior U.S. District Judge Edward J. Lodge. Her cooperation may not shield her from serious prison time.
Cortney Valentine now faces up to 30 years for bank fraud and up to five years each for false declaration and concealment of assets—each charge carrying fines up to $1 million or $250,000, respectively. Sentencing is scheduled for February 28, 2017, at the federal courthouse in Coeur d’Alene. The case serves as a stark warning: lie to the court, and the feds will bury you twice.
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Key Facts
- State: Idaho
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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