NEW ORLEANS – Penh Kang, 41, of Covington, Louisiana, is facing federal charges for allegedly lying on his bankruptcy filings, the Department of Justice announced today. Kang was charged by a bill of information on August 25, 2020, with Making a False Declaration, a violation of Title 18, United States Code, Section 152(3).
According to court documents, Kang knowingly and fraudulently concealed significant financial information during his 2017 bankruptcy case, In re Penh Kang, No.17-12431. The feds say he submitted falsified Schedules of Assets and Liabilities and a Statement of Financial Affairs, swearing under penalty of perjury that the information was accurate.
But it wasn’t. The bill of information alleges Kang failed to disclose approximately $40,000 to $60,000 in gambling losses. He also allegedly hid his interest in two Capital One Bank accounts and a $50,000 life insurance policy – all assets that should have been listed to creditors. This wasn’t a simple oversight; it was a deliberate attempt to cheat the system.
U.S. Attorney Peter G. Strasser was quick to point out that a bill of information is *not* a conviction. “The guilt of the defendant must be proven beyond a reasonable doubt,” Strasser stated. But if Kang is found guilty, he’s looking at a maximum sentence of five years in federal prison, followed by up to three years of supervised release.
Beyond the potential jail time, Kang could also be hit with a hefty fine of up to $250,000.00 and a mandatory $100 special assessment. The feds aren’t playing around with financial crimes, especially when perjury is involved. The case is being prosecuted by Assistant U.S. Attorney Brian M. Klebba, who heads up the Financial Crimes Unit.
The investigation was a joint effort between the Federal Bureau of Investigation and the Office of the U.S. Trustee for the Eastern District of Louisiana. They’re the ones who dug up the discrepancies and brought Kang’s alleged deception to light. This case serves as a warning: hiding assets in bankruptcy will get you caught, and it will come with serious consequences.
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Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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