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Bankruptcy Fraud Lands Houston CPA Behind Bars
A former Houston CPA has been convicted of bankruptcy fraud, leaving him facing up to five years in federal prison.
Stuart Bruce Zidell, 64, of Spring, pleaded guilty to committing bankruptcy fraud, announced U.S. Attorney Kenneth Magidson. Zidell filed a Chapter 7 bankruptcy petition on November 22, 2011, seeking discharge from debt under the U.S. bankruptcy code.
As part of his plea, Zidell admitted to sending an email to a creditor of his estate offering them a sum of money if they agreed not to contest his Chapter 7 bankruptcy case. The bankruptcy system relies on the debtor being truthful and forthright in all aspects of the process.
U.S. District Judge Keith P. Ellison accepted the plea and set sentencing for February 19, 2015. Zidell faces up to five years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending the hearing.
The charges stem from an investigation conducted by the FBI with assistance from the United States Trustee’s Office. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
Zidell’s actions are a stark reminder of the importance of honesty in the bankruptcy process. The system relies on the debtor providing accurate information and cooperating with the trustee to collect assets and comply with court orders.
As Zidell awaits his sentencing, he will have ample time to reflect on the consequences of his actions. His case serves as a cautionary tale for those who would seek to manipulate the system for personal gain.
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Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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