Woman from West Frankfort Sentenced One Year Probation for Bankruptcy Fraud

by San Antonio Attorney

Jenny L.  Parks-Smith, a 42-year-old woman from West Frankfort, was found guilty of bankruptcy fraud and sentenced to a year of probation, according to an official statement by Donald S. Boyce, the legal representative from the United States Department of Justice.

Parks-Smith initially filed for Chapter 13 bankruptcy through a bankruptcy court in Benton.

Parks-Smith received her sentence through a federal court in Benton.  In addition, Smith is ordered to pay a fine worth $200.  According to the bankruptcy court, the offense of concealing one’s personal assets is punishable by law and one can face up to five years in federal prison.

Parks-Smith was indicted last February for not declaring her assets when she filed for bankruptcy.

Boyce said through a press statement that majority of people who conceal their assets during bankruptcy filings primarily use the federal court system to scam their creditors.

Boyce added that their office will prosecute people who disrupt the integrity of bankruptcy proceedings.

Parks-Smith concealed a settlement worth $17,500 from the bankruptcy court.  This money was earned through a claim for worker’s compensation.  Parks-Smith admitted using the money for personal expenses.

Parks-Smith is also guilty for concealing a $2,478 federal tax refund.  Parks-Smith received the tax refund for the 2011 tax year.  In addition, the 41-year-old is also charged with withholding tax returns last 2011.

Nancy J. Gargula, the United States Trustee for Central Illinois, Southern Illinois and Indiana, said that this case serves as an example of the collaboration of the working group of Bankruptcy Fraud and law enforcement partners fighting cases of fraud in the bankruptcy system.

Gargula added that the United States Trustee program and other partners in law enforcement dedicated their work to protect the integrity of the bankruptcy proceedings.

Parks-Smith’s case was prosecuted by Scott A. Verseman, the Assistant United States Attorney.

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