MADISON - A Monroe woman accused of hiding $10,750 in cash from creditors during her bankruptcy pleaded guilty Monday in federal court to bankruptcy fraud.
Bonny L. Block, 55, closed a money market account in April 2011 which had a $10,750 balance. A month later she voluntarily filed a Chapter 7 bankruptcy petition, according to Assistant U.S. Attorney Paul Connell.
Block was granted a discharge order in bankruptcy from Judge Robert Martin in September 2011, releasing her from liability for certain debts. However, the discovery of the $10,750 cash caused Martin to vacate the order within 10 days. Block's bankruptcy petition remains pending.
Connell refused to divulge how Block's concealment of the cash was discovered saying, "it's not part of the (public) record."
Block will face maximum statutory penalties of five years in prison, a $250,000 fine, three years supervised release and restitution at her Sept. 30 sentencing before District Judge William Conley.
Block was working at an assisted living center in Monroe at the time she filed for bankruptcy.
Her original bankruptcy petition listed assets of $6,995 and liabilities of $24,742, largely owed to unsecured creditors, according to court documents. She also had assets that are exempt from bankruptcy claims which included a vehicle and some other personal property.
Discovery of previously undisclosed cash or other assets typically allows the bankruptcy trustee to distribute the assets among creditors on a basis proportional to what they are owed, according to someone close to the case who didn't want to be identified.
Bonny L. Block, 55, closed a money market account in April 2011 which had a $10,750 balance. A month later she voluntarily filed a Chapter 7 bankruptcy petition, according to Assistant U.S. Attorney Paul Connell.
Block was granted a discharge order in bankruptcy from Judge Robert Martin in September 2011, releasing her from liability for certain debts. However, the discovery of the $10,750 cash caused Martin to vacate the order within 10 days. Block's bankruptcy petition remains pending.
Connell refused to divulge how Block's concealment of the cash was discovered saying, "it's not part of the (public) record."
Block will face maximum statutory penalties of five years in prison, a $250,000 fine, three years supervised release and restitution at her Sept. 30 sentencing before District Judge William Conley.
Block was working at an assisted living center in Monroe at the time she filed for bankruptcy.
Her original bankruptcy petition listed assets of $6,995 and liabilities of $24,742, largely owed to unsecured creditors, according to court documents. She also had assets that are exempt from bankruptcy claims which included a vehicle and some other personal property.
Discovery of previously undisclosed cash or other assets typically allows the bankruptcy trustee to distribute the assets among creditors on a basis proportional to what they are owed, according to someone close to the case who didn't want to be identified.