A fringe candidate for mayor of Tucson was arrested for bankruptcy fraud a few months ago.  The 81 year old Marshall Home after filing on March 16, 2011, in United States Bankruptcy Court in Tucson an Involuntary Petition in Bankruptcy, seeking to place the United States in bankruptcy.

Home claimed to have a claim for over $3 billion against the United States.  Additionally, Home operated a Mortgage Rescue Service, offering to help homeowners avoid foreclosure.  According to the United States Attorney, Home was arrested for making false claims against the United States, which is a crime.  He allegedly filed 173 false claims against the United States relating to individuals participating in his Mortgage Rescue Service.

A conviction for making false claims in bankruptcy carries a maximum penalty of five years in prison, a $250,000 fine, or both.  While a creditor often has the power to place a party in involuntary bankruptcy, the United States is not such a party, and claims must always have a basis in law.  Home appears to believe that the United States is without the authority to create most of the laws it has enacted, and therefore owe him damages created by those unauthorized laws.  It appears the United States Attorney disagrees.

Bankruptcy fraud is not something that a debtor would want to be accused or guilty of. When making decisions about the filing of your bankruptcy it is important to consult with a Tucson bankruptcy attorney to make sure that all of your bases are covered.

Stephen M. Trezza, Tucson bankruptcy attorney.