Steven Brian Homan, Bankruptcy Fraud, California 2024

Benicia Man Sentenced to 6 Months in Prison for Bankruptcy Fraud

In a shocking case of bankruptcy abuse, a 62-year-old Benicia man was sentenced to six months in prison for concealing assets from a bankruptcy trustee. According to court documents, Steven Brian Homan sought protection from and discharge of more than $1.3 million in personal and business debt.

Homan wanted to preserve a non-exempt cabin in Redding from liquidation, so he arranged to sell it from his bankruptcy estate to a relative for $100,000. But he had a problem – the cabin had been destroyed by fire before the trustee accepted the offer.

Homan concealed from the bankruptcy trustee that the cabin had been destroyed by fire. Instead, he filed an insurance claim that settled for more than $258,000 in losses associated with the cabin and personal property contained in the cabin at the time of the fire. The money constituted property of the bankruptcy estate, which Homan concealed from the trustee.

The bankruptcy trustee only learned of the fire and concealed insurance settlement after the sale of the cabin was complete. This case is a stark reminder of the importance of honesty and transparency in bankruptcy proceedings.

The investigation into Homan’s activities was led by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney André M. Espinosa prosecuted the case.

Homan’s sentence serves as a warning to others who would seek to abuse the bankruptcy system. His case highlights the need for vigilance and accountability in ensuring that those who seek protection from their debts do so honestly and transparently.

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