Bergen County Man Admits Bankruptcy Fraud | USAO-NJ
NEWARK NJ – A man in Bergen County, New Jersey today admitted to hiding assets from a bankruptcy trustee, acting prosecutor Rachael A. Honig said.
Victor Osorio, 53, of Creskill, New Jersey, pleaded guilty by video conference before U.S. District Judge Kevin McNulty to a brief accusing him of bankruptcy fraud.
According to the documents filed in this case and the statements made in court:
On February 16, 2017, Osorio filed a voluntary Chapter 7 Bankruptcy Code relief application with the United States Bankruptcy Court for the District of New Jersey. In its petition and accompanying schedules of assets and liabilities, Osorio stated that it has no ownership interests in either incorporated or unincorporated businesses. In doing so, Osorio failed to disclose that he owned a stake in Business-1 and Business-2. About seven months earlier, Osorio had filed for Chapter 11 bankruptcy for Business-1, in which he said he was the sole owner of Business-1. Osorio also said he neither owned nor had an interest in checking, savings or other financial accounts, failing to disclose a bank account in the Dominican Republic in which he had an interest.
As part of the petition, on February 24, 2017, Osorio filed amended asset and liability schedules, which revealed a partial stake in Business-1. This statement was inconsistent with information in Business-1’s Chapter 11 bankruptcy proceedings, in which Osorio said he was the sole owner of Business-1. The amended annexes also did not disclose Osorio’s stake in Business-2 and the bank account in the Dominican Republic.
The bankruptcy fraud charge carries a potential maximum penalty of five years in prison and a fine of $ 250,000, which is double the gross gain or loss resulting from the offense. Judgment is scheduled for June 28, 2021.
Acting U.S. Attorney Honig credited the Homeland Security Investigative Special Agents and New York City Police Department detectives assigned to HSI’s Border Security Task Force, under the direction of the Special Agent in charge of HSI Peter C. Fitzhugh in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant US Attorney Dara Govan, Head of the Government Fraud Unit of the US Attorney’s Office in Newark and Assistant US Prosecutor Samantha C. Fasanello of the Criminal Division of the US Attorney’s Office in Newark.