Question on reporting potential fraud.

[svlehman]

What is the name of your state (only U.S. law)? California

Long story short, Contractor is trying to reopen his closed Dec 2008 case to include a judgment I recently obtained for his shady business practice. I know the whole Fraud issue and if I can prove my judgment fits into one of the paragraphs of 527 it cannot be discharged.

My question is in preparing for my case, I noticed that my contractor reported zero income for himself for the last three years when I know for a fact (and have checks to prove it) that i personally paid him $40,000 dollars just before he filed, and a few other creditors/victims paid him a combined total of $90,000. None of this is listed as income as only his wife is listed as having income. If he made all this money, and is claiming all of the creditors that he should have paid but didn't, doesn't this constitute income? How could he get away with pocketing all the money, not paying his sub contractors and not reporting income?

Should I notify the DOJ or Trustee of potential fraud?

[Dewey]

I probably won't be much help, but I ran across this case researching information for my own case and it sounds eerily similar to your situation.

[url]http://www.arb.uscourts.gov/orders-rules-opinions/opinions/mixon/boyd.pdf[/url]

Did he open his BK? If he did, you can file an Adversary Complaint.

[svlehman]

Wow, Is is very very similar to what I am dealing with. Ia am actually going to use this case as an argument if needed at my June 3rd trial regarding my opposition to his motion to reopen and amend his creditor list. I have 3 customers within the last 6 months that will all testify as well as provide cashed checks showing they paid him for his services.


Thanks for your info.

[svlehman]

He has not had his case reopened as of yet. If it does get reopened and I am added I will be submitting and adversary complaint with the argument that he left off on business he owns and failed to report income.