Damian Williams, the USA Lawyer for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Cost of the New York Subject Workplace of the Federal Bureau of Investigation (“FBI”), introduced the unsealing of an Indictment charging JOHN ROESSER, a former lawyer, with abusing the chapter system by making false statements underneath penalty of perjury and submitting falsified data. By February 2022, after years as a accomplice at main regulation corporations, ROESSER owed the Inner Income Service (“IRS”) hundreds of thousands of {dollars} in earnings taxes and filed for Chapter 11 chapter. By means of a number of false statements, ROESSER lied to the Chapter Court docket and the IRS about his purported receipt of hundreds of thousands of {dollars} in an effort to obtain the protections of chapter and hold his belongings – together with a multi-million-dollar residence and an Aston Martin sports activities automotive – whereas not paying his payments. ROESSER was arrested this morning in Bronxville, New York, and shall be offered at present in Manhattan federal court docket.
U.S. Lawyer Damian Williams stated: “Chapter is a lifeline for many individuals who want its protections to maintain their lives collectively. The defendant allegedly corrupted and degraded a system that helps so many. As alleged, he manipulated the chapter system by mendacity and falsifying financial institution data in order that he might use its protections to maintain his belongings and to keep away from paying his payments. And he ought to have recognized higher — he was a lawyer. This Workplace will all the time carry to justice those that use their standing to abuse the general public’s belief and to attempt to put themselves above the regulation.”
FBI Assistant Director Michael J. Driscoll stated: “As alleged, Roesser dedicated chapter fraud when he lied to each the Chapter Court docket and the IRS about his receipt of hundreds of thousands of {dollars} so he might retain his belongings – which included a multi-million-dollar residence and a luxurious sports activities automotive – whereas avoiding paying his payments. The FBI will proceed to analyze and convey to justice those that try to fraudulently exploit our nation’s professional monetary protections to fulfill their very own egocentric wishes.”
As alleged within the Indictment:[1]
From in or about March 2013 by in or about January 2018, ROESSER was a accomplice at three multinational regulation corporations. Throughout his time as a accomplice at these regulation corporations, ROESSER earned substantial earnings — and incurred substantial earnings tax legal responsibility. ROESSER resigned from the New York bar in or about June 2020 after admitting to misappropriating consumer funds.
By 2022, ROESSER owed the IRS, and others, over three million {dollars}. He additionally owned a home that he estimated was price hundreds of thousands of {dollars} and an Aston Martin Rapide, a luxurious sports activities automotive. As an alternative of paying his money owed, in February 2022, ROESSER filed for Chapter 11 chapter in the USA Chapter Court docket for the Southern District of New York. See In re John Roesser, No. 22 Bk. 22049 (Bankr. S.D.N.Y.) (the “Chapter”). In a Chapter 11 chapter, a debtor might stay “in possession,” which means that the debtor retains possession and management of his belongings through the chapter. However a debtor-in-possession should suggest a viable plan of reorganization, which collectors then vote on. If a debtor fails to adjust to the necessities of Chapter 11, a Chapter 11 chapter will be transformed to a Chapter 7 chapter or dismissed. In a Chapter 7 chapter, an appointed trustee often converts a debtor’s belongings into money for distribution amongst collectors. If a chapter is dismissed, the debtor loses the protections of chapter; for instance, collectors can take steps to grab a debtor’s belongings.
ROESSER advised the Chapter Court docket and the IRS that he would quickly obtain hundreds of thousands of {dollars} and be capable to pay his money owed whereas holding his home. Then, ROESSER filed a false declaration and submitted falsified data within the Chapter indicating that he had acquired hundreds of thousands of {dollars}. This was false. ROESSER was concealing that he had not acquired hundreds of thousands of {dollars} in any case, in a fraudulent effort to retain management of his belongings whereas avoiding fee of his money owed.
On or about March 3, 2023, after a few of the above false statements have been withdrawn by ROESSER’s lawyer within the Chapter, ROESSER’s Chapter 11 chapter was dismissed. With out the protections of chapter, collectors can now take steps to grab ROESSER’s belongings to pay his money owed.
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ROESSER, 52, of Bronxville, New York, is charged with one rely of falsification of data in chapter, which carries a most sentence of 20 years in jail, and one rely of false oaths and claims in chapter, which carries a most sentence of 5 years in jail.
The utmost potential sentences are prescribed by Congress and are offered right here for informational functions solely, as any sentencing of the defendant shall be decided by a decide.
Mr. Williams praised the excellent investigative work of the FBI.
The case is being prosecuted by the Workplace’s Complicated Frauds and Cybercrime Unit. Assistant U.S. Lawyer Steven J. Kochevar is in command of the prosecution.
The fees contained within the Indictment are merely accusations, and the defendant is presumed harmless except and till confirmed responsible.
[1] Because the introductory phrase signifies, the whole lot of the textual content of the Indictment and the outline of the Indictment set forth herein represent solely allegations, and each reality described therein ought to be handled as an allegation.