Our office continues to operate during our regular business hours, which are 8:30 am - 5:30 pm, Monday through Friday, but you can call the office 24 hours a day. We continue to follow all recommendations and requirements of the State of Emergency Stay at Home Order. Consultations are available via telephone or by video conference. The safety of our clients and employees is of the utmost importance and, therefore, in-person meetings are not available at this time except for emergencies or absolutely essential legal services.

Articles Tagged with Fraud

Bankruptcy Lawyer Bryan W. Stone answers the question: “What is a small business bankruptcy ?”

Bus manufacturer DesignLine infamously relocated to Charlotte, North Carolina in 2006 from New Zealand and it has been a largely uphill drive for the company ever since.

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

 

The Backstreet Boys have been fighting through bankruptcy, but the boy band’s fans can rest assured: they have not been fighting through their own bankruptcy. Instead, they have been fighting for roughly $3.5 million that the Boys—now grown men, all of them—claim was owed to them by their creator, music mogul Lou Pearlman.

Backstreet Boys Charlotte Mecklenburg Bankruptcy Lawyer North Carolina Chapter 13 AttorneyPearlman created the Backstreet Boys in his Miami laboratory, mixing two parts dance, one-part soul, one-part funk and three ounces of soft rock ‘n’ roll. That’s a joke, but the Backstreet Boys were not amused when Pearlman filed for bankruptcy protection shortly before his arrest on fraud charges.

Pearlman is serving a 25-year prison sentence for his role in running a multimillion dollar Ponzi scheme. Ponzi schemes are a kind of investment fraud in which investors, instead of being paid returns on their money, are paid money invested by new investors, with new investors perpetually footing the “returns” until either new investors cannot be found or existing investors ask for their money back. At that point, the Ponzi scheme collapses.

The Backstreet Boys filed their $3.5 million claim in Pearlman’s bankruptcy over six years ago. Last year, the bankruptcy trustee overseeing Pearlman’s bankruptcy objected to the claims, arguing that they were incomplete. At the time, the trustee observed that the band’s claims lacked “any evidentiary basis,” and therefore the trustee had no option but to object to the claims.

Continue reading

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

In a case that demonstrates exactly how important it is to ensure that your bankruptcy filings are accurate and complete, prosecutors in New Jersey have announced even more charges that are being filed against Joe and Teresa Giudice. The Giudices were made famous from their roles on the Real Housewives of New Jersey and are now infamous due to the 41 counts they face for alleged fraud in connection with false statements made on loan applications as well as others relating to their 2009 bankruptcy case.

 

Wood Gavel Charlotte Bankruptcy Lawyer North Carolina Chapter 7 AttorneyProsecutors say they have solid evidence that the two exaggerated their income while applying for loans before Bravo started airing their reality show. After initially pretending to be wealthier than they actually were, prosecutors say the couple then lied about being poor when they filed for bankruptcy in 2009 after the first season of their show aired.

 

Federal authorities say that they have evidence that proves the couple hid large amounts of money and income from the bankruptcy court that handled their case. After charges became public that their bankruptcy filings were inaccurate, the two decided to dismiss their case, mistakenly believing this would shield them from further scrutiny.

 

The federal indictment went on to explain how Teresa failed to disclose the income she was bringing in from her Real Housewives television show during the filing, this despite the fact that the showed had already finished filming at least one season. The complaint says that she and Joe signed a contract to appear on the show for $110,000 the first season, money that was never declared during the bankruptcy proceedings that lasted nearly two years.

Continue reading

Contact Information