Kulvir Singh Cheema, Bankruptcy Fraud, California 2011

Kulvir Singh Cheema Pleads Guilty to Bankruptcy Fraud

SACRAMENTO, Calif. — In a shocking turn of events, 59-year-old Ripon resident Kulvir Singh Cheema has pleaded guilty to filing a false bankruptcy declaration, according to a statement from the U.S. Attorney's Office.

According to court documents, Cheema, the owner of a trucking company, filed for bankruptcy in April 2011 and provided false information about his employment, income, residence, and other facts. He also concealed certain assets such as trucks and bank accounts that he controlled and that were held in other names. In addition, in January 2010, in contemplation of filing for bankruptcy, Cheema fraudulently transferred ownership of his residence in Ripon from himself to another person.

Cheema's untruthful statements on his bankruptcy petition were designed to give the false impression that he was bankrupt with no assets. Through those falsehoods, Cheema was able to discharge over $2 million in debt, keep his trucks and business running, and repay a close friend. The value of the debts and assets concealed as a result of Cheema's deception was between $150,000 and $250,000.

The case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian A. Fogerty, André M. Espinosa, and Miriam Hinman are prosecuting the case.

Cheema is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 22. Cheema faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

As part of his plea agreement, Cheema has agreed to pay restitution to the victims of his scheme.

The case highlights the importance of honesty and transparency in financial dealings, and serves as a reminder that those who engage in bankruptcy fraud will be held accountable for their actions.

Source: https://www.justice.gov/usao-edca/pr/san-joaquin-county-man-pleads-guilty-bankruptcy-fraud