Bankruptcy Fraud Scheme Unfolds in Puerto Rico
SAN JUAN, Puerto Rico – A federal grand jury has indicted Jorge Droz Yapur in a bankruptcy fraud scheme, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
Jorge Droz Yapur, a resident of Puerto Rico, was indicted in a bankruptcy fraud scheme for making materially false representations from May 2019 to August 2021 in order to defraud creditors as part of a bankruptcy proceeding, in violation of 18 U.S.C. § 157. He is also charged with nine counts of concealment of assets during his bankruptcy proceedings in violation of 18 U.S.C. § 152, and eight counts of making false statements in relation to such bankruptcy proceedings, in violation of 18 U.S.C. § 152.
The indictment alleges that during his bankruptcy proceedings, Jorge Droz Yapur concealed assets and income by using a bank account in his adult son’s name. It further alleges that Jorge Droz Yapur testified under oath that his mother was at an elderly home and provided Puerto Rico tax returns as part of the bankruptcy proceedings wherein he claimed his mother as a dependent between the years 2015, 2016, 2017, and 2018, when in fact, he knew his mother had passed away in the year 2011.
If convicted, Jorge Droz Yapur may be sentenced to up to five years of imprisonment for each violation of 18 U.S.C. § 157 and § 152, a $250,000 fine, and three years of supervised release.
The U.S. Attorney’s Office remains vigilant in the effort to hold accountable those who would defraud the government, said U.S. Attorney Muldrow.
Jorge Droz Yapur is currently free on bail pending trial. The case is being prosecuted by the U.S. Attorney’s Office for the District of Puerto Rico and the U.S. Trustee Program. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce Rules 6-8.
Key Facts
- State: Puerto Rico
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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