Post Falls Woman Admits Hiding $38,960 in Bankruptcy Scam

Rebecca C. Buell, 48, of Post Falls, Idaho, stood in federal court today and admitted to hiding $38,960.53 in assets during a Chapter 7 bankruptcy filing in 2013. Facing federal charges, Buell waived her right to indictment and pleaded guilty to concealment of bankruptcy assets, according to U.S. Attorney Wendy J. Olson.

The crime came to light after a probe by the Internal Revenue Service, Criminal Investigations (IRS-CI), which uncovered a deliberate scheme to deceive creditors and the court. Buell’s false bankruptcy petition allowed her to shed debts while shielding tens of thousands in assets—a move that prosecutors call a calculated betrayal of the justice system.

An information charging Buell was filed on December 16, 2017, bypassing a grand jury indictment as part of a negotiated plea. The charge of concealment of bankruptcy assets carries a maximum penalty of 5 years in federal prison, a fine of up to $250,000, and as much as 3 years of supervised release following any sentence.

Sentencing is scheduled for April 25, 2017, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene. Buell now faces the full weight of federal penalties as judges grow increasingly intolerant of financial deception.

The case is part of a broader crackdown by the Financial Fraud Enforcement Task Force (FFETF), launched in 2009 to target white-collar crime with unprecedented coordination. Comprising over 20 federal agencies and 94 U.S. attorneys’ offices, the task force has prosecuted nearly 15,000 defendants in financial fraud cases over the past three fiscal years alone.

With more than 2,700 of those involving mortgage fraud, authorities are sending a clear message: hiding assets may seem like a quiet crime, but federal investigators are watching. For Buell, the cost of that decision could be years behind bars.