Sally Marie Jones, 56, Crewe, Virginia, who pleaded guilty in September 2012 to charges related to bankruptcy fraud, was sentenced in the United States District Court for the Western District of Virginia in Lynchburg.
The defendant waived her right to be indicted in September and pleaded guilty to one count of bankruptcy fraud.
Jones was sentenced to six months incarceration and two years of supervised release thereafter.
According to evidence and court documents, Jones filed for bankruptcy in the Eastern District of Virginia twice between June 18, 2008 and June 8, 2009. Both times she filed, the defendant listed a different social security number and address. On July 23, 2009, the Bankruptcy Court for the Eastern District of Virginia banned Jones from filing bankruptcy for two years in any United States Bankruptcy Court.
Despite the two-year ban, Jones filed Chapter 13 bankruptcy in the Lynchburg Division of the Western District of Virginia on December 14, 2009, using a false social security number and the address of 3470 Candlers Mountain Road, Lynchburg. No such address exists.
According to evidence, when a creditor made a motion to dismiss her bankruptcy claim, Jones admitted that the only reason she filed bankruptcy was to enjoy the protection of the automatic stay to avoid foreclosures.
The case was brought as part of an investigation by the Bankruptcy Fraud Task Force for the Western District of Virginia. The conviction is the task force’s fourth in the past 20 months.
This case was investigated by the Bankruptcy Fraud Task Force for the Western District of Virginia, which consists of agents from the Internal Revenue Service, the Federal Bureau of Investigation, United States Trustee’s Office and the United States Attorney’s Office for the Western District of Virginia. The case is being prosecuted by Assistant United States Attorney Daniel Bubar.
“When people provide false information to bankruptcy courts, this office will hold them accountable,” United States Attorney Timothy J. Heaphy said. “Bankruptcy fraud is a serious crime with real consequences, which compels a serious law enforcement response.”