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U.S. Department of Justice Stephen J. Murphy Suite 2001
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For Immediate Release: Contact: Gina Balaya (313) 226-9758 July 11, 2007 |
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EVENT: Sentencing
Defendant: Jack John Mevorach
HAZEL PARK MAN SENTENCED FOR BANKRUPTCY FRAUD
A 48 year-old Hazel Park man was sentenced today to 18 months’ imprisonment after pleading guilty to one count of bankruptcy fraud charging him with a scheme to defraud his former employer, DSW Management, and then filing two fraudulent bankruptcy petitions in the business owner’s name to conceal his fraud, United States Attorney Stephen J. Murphy announced today.
Being sentenced by U.S. District Judge Arthur J. Tarnow was Jack John Mevorach of Hazel Park, Michigan.
The fraud arose when Jack Mevorach began working for DSW Management, a landscaping and snow plowing business in 2003 and began to divert customers’ payments to himself for his personal use. As creditors of DSW sought to collect their monies, Mevorach completed and forged the signature of the company’s owner on two separate bankruptcy petitions and filed them with the U.S. Bankruptcy Court for the Eastern District of Michigan. This action kept the creditors from continuing to collect their debts and helped conceal Mevorach’s diversion of monies from the company’s owner.
United States Attorney Stephen J. Murphy said, “The use of our federal bankruptcy system to conceal criminal activity by robbing creditors who have provided their goods and services in the full expectation of being paid is unacceptable. Discovering that the debt you are owed has been discharged in a bankruptcy can be financially devastating enough without the added burden of finding out that the bankruptcy case was fraudulent. This crime created several victims, the defrauded employer as well as his creditors. We will aggressively pursue such abuses.”
The investigation of this case was conducted by Special Agent Claudia Link of the FBI Office in Detroit and prosecuted by Assistant U.S. Attorney Ross I. MacKenzie and Special Assistant U.S. Attorney Leslie K. Berg. Substantial support was received from the U.S. Trustees Office in Detroit charged with administering bankruptcy cases.