Cortney S. Valentine, Bankruptcy System Defraud, Utah 2024

COEUR D’ALENE, ID – A husband and wife from Liberty, Utah, are facing the consequences for a calculated scheme to defraud banks and the bankruptcy system. Cortney S. Valentine, 40, and Nicolette P. Valentine, 37, received federal sentences Tuesday, bringing an end to a case riddled with false statements and concealed assets. The pair systematically lied to lenders and the courts, enriching themselves at the expense of financial institutions and the integrity of the legal process.

Acting U.S. Attorney Rafael Gonzalez announced that Senior U.S. District Judge Edward J. Lodge handed down a 40-month prison sentence to Cortney Valentine, followed by five years of supervised release. Restitution will be determined at a later date. His wife, Nicolette Valentine, received a sentence of time served, along with five years of supervised release and 200 hours of community service. She too, is ordered to pay restitution. Both pleaded guilty months apart: Cortney on November 1, 2016, and Nicolette on June 23, 2016.

The scheme, as detailed in Cortney Valentine’s plea agreement, began with a $362,000 loan from U.S. Bank obtained through material false statements. But the deception didn’t stop there. In November 2011, Cortney Valentine agreed to sell a home for $1,150,000. Instead of reporting the proceeds during his separate bankruptcy filing, he pocketed the money to fund his lifestyle – a blatant disregard for the court and creditors. He compounded the crime by making numerous false statements and actively concealing the funds.

Nicolette Valentine wasn’t far behind. According to her plea agreement, she defrauded Mountain West Bank out of $43,766.27 by making false statements to refinance a truck. The loan wasn’t used as intended – to pay off the existing loan and give the bank clear title. Instead, Nicolette Valentine deposited the funds into her account and spent it on personal expenses. She then filed for bankruptcy in May 2012, and while under oath, continued the pattern of deception, offering material false statements during questioning.

This wasn’t a spur-of-the-moment lapse in judgment. This was a coordinated effort to manipulate the system, and the Valentines are now paying the price. The investigation, led by the Federal Bureau of Investigation, meticulously untangled the web of lies and financial maneuvering. The sentences send a clear message: those who attempt to defraud financial institutions and abuse the bankruptcy process will be held accountable.

While Nicolette Valentine received a lighter sentence, the court clearly recognized the severity of the crimes committed by both defendants. The ordered restitution suggests that the Valentines will be required to repay their victims, though the exact amount remains to be determined. This case serves as a stark reminder that financial crimes, even those seemingly victimless, carry significant consequences.

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