MADISON - A former Monroe resident was placed on two years' probation Monday in federal court and fined $1,000 for hiding $10,750 in cash from creditors during her bankruptcy proceeding and then lying about it to a court official.
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 court documents.
The funds came from the sale of her house, said Assistant U.S. Attorney Paul Connell
Block, now of Lancaster, lied under oath to a bankruptcy trustee who questioned her about how she spent the money.
"The bankruptcy system is set up to give honest debtors a second chance, but it's based on trust," Connell said.
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.
Eirka Bierma, Block's attorney, asked for a probation-only sentence noting her client's solid work history and that a felony conviction from the offense also should be considered part of Block's punishment.
Block told District Judge William Conley that she was "truly sorry for what I did, and I've turned my life around working with people (who need care) every day."
Block was working at an assisted living center in Monroe at the time she filed for bankruptcy.
The amount of money involved in the offense and Block's three prior convictions for operating while intoxicated factored into the 12-18 month advisory guideline range Conley could have imposed.
However, Conley called Block "a good person who made two very bad decisions," and that probation and a fine would be sufficient punishment.
Block's 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 those assets among the 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 court documents.
The funds came from the sale of her house, said Assistant U.S. Attorney Paul Connell
Block, now of Lancaster, lied under oath to a bankruptcy trustee who questioned her about how she spent the money.
"The bankruptcy system is set up to give honest debtors a second chance, but it's based on trust," Connell said.
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.
Eirka Bierma, Block's attorney, asked for a probation-only sentence noting her client's solid work history and that a felony conviction from the offense also should be considered part of Block's punishment.
Block told District Judge William Conley that she was "truly sorry for what I did, and I've turned my life around working with people (who need care) every day."
Block was working at an assisted living center in Monroe at the time she filed for bankruptcy.
The amount of money involved in the offense and Block's three prior convictions for operating while intoxicated factored into the 12-18 month advisory guideline range Conley could have imposed.
However, Conley called Block "a good person who made two very bad decisions," and that probation and a fine would be sufficient punishment.
Block's 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 those assets among the creditors on a basis proportional to what they are owed, according to someone close to the case who didn't want to be identified.