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LAWYER CONVICTED OF BANKRUPTCY FRAUD - NEARLY $100K IN REAL ESTATE PROCEEDS CONCEALED

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Industry Observer TN LIC# 290452

Lancaster Lawyer Convicted of All Charges in Bankruptcy Fraud

U.S. Attorney’s Office November 30, 2011
  • Eastern District of Pennsylvania (215) 861-8200
ALLENTOWN, PA—Kenneth G. Reidenbach, 61, an attorney practicing in Lancaster, PA, was convicted today of all charges in connection with fraud stemming from three bankruptcy proceedings in which he represented the debtors.
Reidenbach was convicted of conspiracy to commit bankruptcy fraud and to conceal property in a bankruptcy, bankruptcy fraud, two counts of concealing property in bankruptcy, two counts of being an agent concealing property in bankruptcy, two counts of embezzlement against a bankruptcy estate, and one count of false declaration, certification, or verification in a bankruptcy proceeding.

With respect to the first bankruptcy proceeding, Reidenbach concealed more than $51,000 of clients’ real estate sales proceeds from the bankruptcy court.

In connection with the second proceeding, Reidenbach concealed nearly $40,000 of a client’s real estate proceeds from the bankruptcy court. In the third proceeding,

Reidenbach falsely represented that he had agreed to receive only $1,500 for representing the client in the bankruptcy proceeding when he had, in fact, received approximately $4,800.

Reidenbach is facing a statutory maximum possible sentence of 45 years in prison and a fine of $2.25 million when sentenced on May 2, 2012.

The case was investigated by the Federal Bureau of Investigation with assistance from the Office of the United States Trustee and is being prosecuted by Assistant United States Attorney David J. Ignall.

Courtesy FBI
Posted by

Time&Temp Memphis

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Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

David -- not very good thinking on the attorney's part. About $96,000 in gain (if he got it all) and potential $2.25  million penalty.  That is a potential cost of over 23 times what he got.  What was he thinking?  Not counting all the years in jail - though maybe he was using that as his retirement plan.

Dec 01, 2011 05:55 AM
David Saks
Memphis, TN
Broker / Industry Analyst

The motivation to commit this type of larceny chokes his profession. In the last year, I've seen dozens of cases involving corruption among the nations attorneys, Steven. All very disturbing. Another posted today.

Dec 01, 2011 09:22 AM
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