Operation Silver Screen' Targets Bankruptcy Fraud

WASHINGTON, D.C.-United States Attorneys have filed criminal charges against 21 individuals in 11 different districts on a variety of federal bankruptcy fraud counts, it was announced today by Lawrence Friedman, Director of the Executive Office for United States Trustees. The announcement is the culmination of "Operation SILVER SCREEN" and follows today's announcement, by united states attorney patrick fitzgerald of the northern district of illinois, that former trading and investment firm executive marc thompson, age 52, of chicago, has been indicted for bankruptcy fraud, wire fraud, money laundering, and using a fire to commit wire fraud, and chicago police officer deborah a. ahmad bey, age 45, has been indicted for making false declarations in bankruptcy./p>

Operation SILVER SCREEN spotlights the indictment of 21 individuals in 17 separate prosecutions and demonstrates the breadth of enforcement actions taken by the Department of Justice in combating bankruptcy fraud and protecting the integrity of the bankruptcy system. These cases collectively involve: the concealment of more than $7 million in assets; illegal conduct by an attorney and a certified public accountant; use of false Social Security numbers and false identities; submission of forged documents; false statements; and various fraudulent acts.

The combined group of cases is dubbed "Operation SILVER SCREEN" in recognition of the U.S. Trustee Program's enhanced screening of bankruptcy cases to identify fraud and abuse. The U.S. Trustee Program is a Justice Department component that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. It was created by Congress in October 1979 as a pilot program in 18 judicial districts, and was expanded in 1986 to all judicial districts except those in Alabama and North Carolina.

"Operation SILVER SCREEN has targeted a wide range of criminal conduct that strikes at the integrity of the bankruptcy courts and undermines public trust in the bankruptcy process," Friedman stated. "The prosecutions announced today demonstrate that the Department of Justice is committed to detecting, investigating, and prosecuting those who violate our bankruptcy laws in a variety of ways. Criminal abuses and schemes will not be tolerated in our bankruptcy system. The U.S. Trustee Program is working with law enforcement agencies throughout the country to ensure this result."

"I wish to express my sincere appreciation for the strong enforcement actions taken by the U.S. Attorneys' offices, as well as the cooperative efforts of federal and state agencies including: the Justice Department's Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives; the Social Security Administration Office of the Inspector General; Internal Revenue Service Criminal Investigations; the Department of Housing and Urban Development Office of the Inspector General; the U.S. Postal Inspection Service; the Department of Labor Office of the Inspector General; the Department of Homeland Security Immigration and Customs Enforcement; the Department of Health and Human Services Office of the Inspector General; and the California Labor and Workforce Development Agency's Employment Development Department," Friedman added.

"Operation Silver Screen sends a strong message that bankruptcy fraud of all types will not be tolerated, and will be vigorously investigated and prosecuted," stated Richard E. Byrne, Chief of the U.S. Trustee Program's Criminal Enforcement Unit. "The array of conduct charged not only threatens the integrity of the bankruptcy system, but also wastes the resources of the federal bankruptcy courts. The U.S. Trustee Program is committed to assisting United States Attorneys' offices and law enforcement agencies from around the country as they fight bankruptcy fraud and abuse."

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