Marjorie Parise, Bankruptcy Fraud, New Jersey 2013

TRENTON, N.J. – An Ocean County, N.J. woman’s scheme to conceal profits from a Ponzi scheme investment in her bankruptcy filing has come to an end. Marjorie Parise, 51, of Manahawkin, N.J. pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to one count of bankruptcy fraud.

Parise and her husband invested approximately $115,750 with a company known as Global Trading Investments, LLC, in 2003. They received profits totaling $429,154.91, but the owners of Global Trading were operating a Ponzi scheme. A judgment was entered against Parise in 2006 requiring her to return the profits she had made from her investments in the scheme.

However, Parise took numerous steps to fraudulently conceal a significant amount of funds and assets from the Trustee. She made false statements and omissions during a deposition in the bankruptcy proceeding, and withdrew at least $455,850 in cash from her bank accounts between September 14, 2006, and December 8, 2006. She made 67 currency withdrawals, none of which exceeded the $10,000 threshold for the filing of Currency Transaction Reports.

Parise also transferred ownership of her residence from her name only to the names of both her and her husband, and increased the home equity line of credit on the home. On July 7, 2008, Parise filed for individual Chapter Seven bankruptcy protection. On her bankruptcy petition, she fraudulently failed to report millions of dollars in real estate holdings plus hundreds of thousands of personal assets.

The count of bankruptcy fraud to which Parise pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for May 10, 2013.

U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen in Newark for the investigation leading to today’s guilty plea. The government is represented by Assistant U.S. Attorney R. Joseph Gribko, of the U.S. Attorney’s Office in Trenton.

Parise is scheduled to be sentenced on May 10, 2013. In the meantime, she will remain free on bail.

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