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Man indicted in attempt to defraud 28 US federal bankruptcy courts out of $1.8M in unclaimed funds

JORGE RUEDA and REGINA GARCIA CANO
April 09, 2024

SAN JUAN, Puerto Rico (AP) -- A Maryland man accused of trying to defraud 28 federal bankruptcy courts out of more than $1.8 million in unclaimed funds was indicted by a federal grand jury in Puerto Rico, authorities said Tuesday.

The alleged scheme targeted courts from Alabama to Wisconsin and even Hawaii from 2022 to April 2024, according to the U.S. Attorney's Office.

Officials said the suspect used an electronic records system to search for bankruptcy cases with unclaimed funds and then submitted fake applications to obtain the money.

The U.S. Bankruptcy Court for the District of Puerto Rico reported the alleged scheme to federal authorities, officials said.

If convicted, the suspect faces up to 20 years in prison.

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Follow AP's coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america

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