Federal Court Postpones Bankruptcy Fraud Sentencing of Abby Lee Miller

by San Antonio Attorney

The bankruptcy fraud sentencing of Abby Lee Miller has been rescheduled from Oct. 11 to Dec.  2.

Pittsburgh federal prosecutors and Miller’s lawyer asked the federal court to postpone the sentence pending a federal appeals court decision on a comparable bankruptcy fraud case that would probably influence her sentencing.

The “Dance Moms” star has pleaded guilty to attempting to conceal $775,000 of earnings from her reality show in Lifetime network and spinoff programs at the time of her Chapter 11 bankruptcy and breaking more laws by bringing Australian money equivalent to about $10,000 into the United States in 2014.

The indictment shows that Miller filed for bankruptcy in December 2010 to reorganize her dance studio.

According to the prosecutors, the guidelines of sentencing indicate an imprisonment of 24 to 30 months.  However, Miller’s attorney argued that creditors didn’t suffer monetary losses so the verdict should only be probation or up to six months in prison.

In October, Miller was charged with concealing $775,000 of income when it filed for Chapter 11 bankruptcy.  Later on she was indicted for packing $120,000 into plastic bags and asking people she knew to put them in their suitcases in August 2014.  It was a violation of the law that requires people to declare the money they are bringing into the country if it is worth more than $10,000.

In October, it was reported that email communications between the reality star and her business partner and accountant were gathered as evidence against Miller.

The popular dance coach was charged with bankruptcy fraud last fall, after the bankruptcy judge of her case saw “Dance Moms” on television and doubted whether Abby was correctly stating her income from the Lifetime program.

Miller originally pleaded not guilty, which could have resulted in five years jail time and about $5 million in fines if she was proven guilty.  But because of a plea agreement with the federal officials, her sentence will be significantly reduced.

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