Malcolm Bynum, FDCPA Violation, North Carolina 2022
A federal jury in Charlotte has returned a verdict against Malcolm Bynum, for fraudulently transferring a piece of property to a relative in violation of the Federal Debt Collection Procedures Act (FDCPA), to avoid paying restitution owed to victims of his criminal conduct, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
The FDCPA prevents individuals who owe debts to the United States from improperly transferring properties and other assets in order to avoid paying their debt obligations, including court-ordered criminal restitution to victims.
On January 22, 2021, the United States filed a federal civil lawsuit against Tico Bynum, Malcolm Bynum, and Donald Bynum for violating the FDCPA. According to the civil complaint, Tico Bynum fraudulently transferred the property located at 1344 Downs Avenue to his son, Malcolm Bynum, to avoid his debt obligations, specifically, $221,818.98 in restitution payments owed to victims of his crimes.
Malcolm Bynum, a Charlotte man previously convicted of federal crimes, has been found guilty of violating the Federal Debt Collection Procedures Act. The property in question had a tax value of $207,900 at the time of transfer.
According to trial evidence, the day before Malcolm Bynum signed a plea agreement with the government, the quitclaim deed was recorded with the Mecklenburg County Register of Deeds, effecting the transfer of the 1344 Downs Avenue to his grandfather. The deed reflected that Donald Bynum did not pay any consideration to Malcolm Bynum in exchange for the property.
On February 22, 2022, Judge Frank D. Whitney ruled that Tico Bynum’s transfer of the property to his son was indeed fraudulent. A federal jury found that the property transfer was a violation of the FDCPA on Tuesday, March 22, 2022.
The Court will determine the appropriate statutory relief, which may include the avoidance or voiding of the property transfers and the issuance of a writ of execution on the property, to satisfy the restitution judgments stemming from the criminal convictions. Malcolm Bynum was ordered to pay restitution and penalties totaling $169,923.24 to his victims as part of his sentence for the criminal case.
“Time and again, the Bynums have tried to dodge their financial obligations to crime victims and thwart the United States’ efforts to enforce court-ordered judgments. But the proverbial buck stops here,” said U.S. Attorney King. “Collection on federal debts – and particularly restitution judgments entered for the benefit of crime victims – remains a priority for my Office.”
The Financial Litigation Unit enforces collection of criminal restitution, fines, and other monetary penalties ordered as the result of criminal convictions, as well as civil debts owed to the United States.
Key Facts
- State: North Carolina
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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