MADISON - A Monroe businessman who hid assets valued at more than $500,000 from creditors after declaring bankruptcy was placed on two years of probation Thursday in federal court and fined $30,000 for bankruptcy fraud.
Vance A. Miller, 70, was unable to repay loans he obtained to invest in an ethanol business and on advice of his attorneys, filed for Chapter 11 bankruptcy in 2011.
In defrauding the bankruptcy court, Miller significantly undervalued the worth of his ethanol stock, did not report bank account balances and omitted ownership of a collectible Corvette in January 2012 bankruptcy filings, said Assistant U.S. Attorney Kevin Burke.
During a subsequent meeting with creditors, Miller lied under oath about the value of his assets, Burke said.
The bankruptcy trustee checking on the value of the ethanol stock found it to be worth more than Miller declared and asked the FBI to investigate. That agency found other assets Miller failed to disclose.
"The stock value got him into trouble," Burke said after court.
Miller borrowed heavily to invest in what Burke called a bio-diesel operation and when the stock's return was not sufficient to repay the loan, Miller filed for bankruptcy.
Had Miller held onto the stock and perhaps liquidated enough assets to satisfy his lender, he would have seen the stock's value eventually rise to where he may not have needed to file for bankruptcy, Burke said.
The stock value did rise to where the trustee used it to pay off Miller's creditors "making everyone whole," Burke said.
At the time, Miller was suffering from a bi-polar disorder and prone to make rash financial decisions, his attorney Mark Maciolek wrote the court.
While the disorder may have caused Miller to make financial mistakes, it did not excuse his lying to creditors, District Judge William Conley said.
Ordinarily, Conley would have sentenced Miller to some prison time for the offense as a deterrent to others. However, in the past few years, Miller has developed dementia to where a prison sentence would have advanced his mental deterioration and his condition would create an undue expense for taxpayers, Conley said.
"Given his age, and mental health issues and there being little risk of re-offending makes probation" the best outcome for Miller, Conley said.
Conley also ordered Miller to complete 40 hours of community service to the indigent by working in soup kitchens or senior citizen programs while on probation.
Conley called Miller "an upstanding member of community who has given back in many ways." He asked Miller to continue to do so to the best of his capabilities.
Miller apologized to his family, friends and to Monroe for his offense which he attributed to greed and pride.
"Everything I worked for the past 50 years was slipping away and I tried to hang on to some of it, but now I realize I was greedy," Miller told Conley.
On Jan. 10, 2012, he filed schedules that listed total assets of $2.812 million and total liabilities of $4.331 million. Miller listed real estate holdings that included a house on 4th Street, interest in the Iron Horse restaurant in Mazomanie, a Verona dental office, his insurance agency office and a car wash.
Vance A. Miller, 70, was unable to repay loans he obtained to invest in an ethanol business and on advice of his attorneys, filed for Chapter 11 bankruptcy in 2011.
In defrauding the bankruptcy court, Miller significantly undervalued the worth of his ethanol stock, did not report bank account balances and omitted ownership of a collectible Corvette in January 2012 bankruptcy filings, said Assistant U.S. Attorney Kevin Burke.
During a subsequent meeting with creditors, Miller lied under oath about the value of his assets, Burke said.
The bankruptcy trustee checking on the value of the ethanol stock found it to be worth more than Miller declared and asked the FBI to investigate. That agency found other assets Miller failed to disclose.
"The stock value got him into trouble," Burke said after court.
Miller borrowed heavily to invest in what Burke called a bio-diesel operation and when the stock's return was not sufficient to repay the loan, Miller filed for bankruptcy.
Had Miller held onto the stock and perhaps liquidated enough assets to satisfy his lender, he would have seen the stock's value eventually rise to where he may not have needed to file for bankruptcy, Burke said.
The stock value did rise to where the trustee used it to pay off Miller's creditors "making everyone whole," Burke said.
At the time, Miller was suffering from a bi-polar disorder and prone to make rash financial decisions, his attorney Mark Maciolek wrote the court.
While the disorder may have caused Miller to make financial mistakes, it did not excuse his lying to creditors, District Judge William Conley said.
Ordinarily, Conley would have sentenced Miller to some prison time for the offense as a deterrent to others. However, in the past few years, Miller has developed dementia to where a prison sentence would have advanced his mental deterioration and his condition would create an undue expense for taxpayers, Conley said.
"Given his age, and mental health issues and there being little risk of re-offending makes probation" the best outcome for Miller, Conley said.
Conley also ordered Miller to complete 40 hours of community service to the indigent by working in soup kitchens or senior citizen programs while on probation.
Conley called Miller "an upstanding member of community who has given back in many ways." He asked Miller to continue to do so to the best of his capabilities.
Miller apologized to his family, friends and to Monroe for his offense which he attributed to greed and pride.
"Everything I worked for the past 50 years was slipping away and I tried to hang on to some of it, but now I realize I was greedy," Miller told Conley.
On Jan. 10, 2012, he filed schedules that listed total assets of $2.812 million and total liabilities of $4.331 million. Miller listed real estate holdings that included a house on 4th Street, interest in the Iron Horse restaurant in Mazomanie, a Verona dental office, his insurance agency office and a car wash.