Attorneys Case Illustrates Importance of Claiming Assets and Liabilities when Filing for Bankruptcy in Modesto
A controversial California civil rights attorney has been disbarred and sentenced to prison for bankruptcy fraud, according to the California Bar Journal.
Stephen G. Yagman, made a name for himself suing the Los Angeles Police Department for a variety of offenses and the Federal Bureau of Investigation over its handling of Ruby Ridge. He was convicted of not paying more than $100,000 in federal taxes and of hiding assets when he filed for personal and corporate bankruptcy in 1999.
A proper accounting of assets and liabilities is critical when filing for bankruptcy and is one area in which a Modesto bankruptcy lawyer can provide valuable assistance. Failure to properly declare assets can result in significant legal issues. Conversely, failure to declare all liabilities is equally critical. Clients most frequently have problems on the liability side of the equation. Failure to declare a liability means it will not be discharged in a bankruptcy. And a client's inability to declare bankruptcy again for years after an action is discharged means they may be ineligible for additional relief. Whether filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Modesto, consulting an experienced attorney is the best course of action for protecting your current and future financial well-being.
In this case, Yarman was sentenced to three years in prison on charges of tax evasion and bankruptcy fraud. Investigators say he transferred his Venice Beach home into the name of his girlfriend and hid assets in her account before declaring bankruptcy. He is also accused of failing to pay more than $158,000 in tax liabilities, and of failing to pay federal payroll taxes at his law firm, Yagman & Yagman, P.C.
He is accused of concealing $776,000 in assets when he filed for corporate and personal bankruptcy in 1999. He claims he was singled out because of his years fighting with the federal government, which included a lawsuit challenging the detention of terror suspects at Guantanamo Bay.