Jennifer McKinney MckMama Bankruptcy: Fraud Alleged by Trustee
Posted on May 26th, 2012
What is fraud? A false representation of a matter of fact "whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed" that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.
Yesterday in the United States Bankruptcy Court, District of Minnesota, the trustee in the bankruptcy of Israel McKinney and Jennifer Sauls McKinney (known as mommy blogger MckMama, blogging at mycharmingkids.net) filed Case 12-06024, objecting to the discharge of the bankruptcy. Last month I published a lengthy article about the MckMama bankruptcy fraud, and today we?re going to compare what I showed you and what trustee Gene Doeling (my new hero!!!) has alleged.
This filing contains strong language. The trustee uses words such as manipulated, destroyed, concealed, falsified, false, and intentionally. The one key word you will see over and over is undisclosed. The bankruptcy laws in the United States give people a chance to start over, without regard to whether the debts were incurred through recklessness or through no fault of the person filing bankruptcy. But in order to have your slate wiped clean, you must make a full and complete disclosure according to the rules.
Proper disclosure in bankruptcy isn't hard. All you do is fill out the forms truthfully. It's a fill-in-the-blanks exercise with which most people elect to have an attorney's help. But at the end of the day it is the debtor's responsibility to 'fess up to all assets, income and transfers during the time periods specified on the forms.
Jennifer and Israel McKinney haven't been proven guilty in a court of law yet, but they will be. There is documentation and testimony that proves MckMama lied in the bankruptcy filing. And it wasn't one or two isolated instances. There were multiple lies that are now proven false by underlying documentation, and (coincidentally enough) Jennifer's own writings on her My Charming Kids blog and her Facebook page.
Here is the complaint in the new case, which may otherwise be called Time to Pay the Piper, Jennifer McKinney! I'm going to go through the complaint against Jennifer and Israel McKinney, and then refer back to what I wrote in my original post.
From the Complaint:
4. The debtors appeared at an initial 341 meeting on January 9, 2012. A continued 341 meeting was held on March 5, 2012, at which time the trustee questioned the debtors regarding several undisclosed assets, including an undisclosed PayPal account, undisclosed receivables, undisclosed travel trailer and undisclosed domain names. Between 11/22/11-12/27/11, the debtor deposited over $10,000 into Well Fargo Account no. 9246. Those deposits occurred as follows; 11/22 of $1,140; 11/25 $1,105; 12/6 $6,087 and a 12/27 deposit of $2,060. The codebtor disclosed her self employment income on Schedule I as $1,500 per month.
5. The co-debtor had a Google AdSense account which reflected a balance owing her as of November 30, 2011 of $2,060.16. The co-debtor withdrew these funds from her Google account on December 23, 2011, ten days after she filed bankruptcy. The Google account was not disclosed on the debtors' bankruptcy schedules.
6. The trustee, on information and belief alleges that the co-debtor had one or more PayPal accounts which had cash in them on the date she filed bankruptcy, which were not disclosed.
7. The co-debtor had income coming in from New Media Consultants, which was not disclosed. The co-debtor received a payment from this entity into her PayPal account on December 23, 2011 of $500.
8. The co-debtor had income coming in from Burst Media which was not disclosed. The debtor had an account receivable from Burst estimated to be around $400 at the time the bankruptcy was filed.
From Fraud Files:
So Jennifer claims she was making $1,500 per month with Google, which would appear to correlate with the monthly income she reported in the bankruptcy filing. But the trustee finds her actual income in the documents. The real income received in December 2011 was:
$500 from New Media Consultants
$824 from Burst
$6,387 from BlogFrog and another $500 from an unknown source
Undisclosed income from Amazon.com and other affiliate programs
Potentially other undisclosed income
This is a total of at least $7,711 in December 2011 alone, when Jennifer reported in the December 2011 bankruptcy filing that her total income (blog, photography, deals, the whole works) was going to be $1,500 per month. A simple peek at her own accounts would have clearly told her that her income was going to be more than $1,500 per month.
One bank deposit of $3,497 in November 2011 alone again shows the falsity of Jennifer's statement that she was going to make $1,500 per month.
So Jen earned $2,884 of income from certain advertising alone in December 2011, yet in that same month, she put on her bankruptcy paperwork that she was going to earn $1,500 per month total from the website, photography, and deals. Liar, liar, pants on fire.
From the Complaint:
9. The debtors had a travel trailer which they purchased in the spring of 2010 for $900 and which they still possessed at the time of the bankruptcy filing. The debtors sold that asset after their bankruptcy filing to a friend for $400. This trailer was not disclosed on the debtors? bankruptcy schedules.
10. The debtors purchased a 34 foot Jayco Jayflight camper in early 2011 for $12,000. They sold this camper in May 2011 and received $9,000 from the sale. The debtors did not disclose the transfer or sale of this asset in their bankruptcy schedules or at the initial 341 meeting. The debtors claimed at the continued creditors meeting they did not have to disclose this transaction because they were holding an open title when it was sold, and therefore they never owned the camper.
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