Bankruptcy Fraud is Rampant and the US Trustees office allows for it!

Bankruptcy Fraud

Bankruptcy Trustees

The Predators Within

When you file bankruptcy, the court assigns your case a trustee to administer the case. These people are legally known as Panel Trustees, but commonly referred to as a trustee, or bankruptcy trustee.

They are contract employees. They are not government employees. They are on contract.

During the 1930s, a new division within the U.S. Justice Department called the U.S. Trustee Office was created to deal with the rampant fraud by bankruptcy trustees against citizens and businesses.

But something is very wrong with the U.S. Trustee program. Graft and corruption among the panel trustees has not lessened and victims still have no recourse. Most victims report their evidence of criminal activity goes into a black hole and the U.S. Trustee does nothing.

See the ATP, Whistleblower, Sturman, Solder, cases of the crimes against these people while the U.S. Trustee's Office is either covering up the crimes or turning a blind eye.

The FBI defines one of their duties as investigating bankruptcy trustee fraud. The U.S. Trustee Program, however, redefined what constitutes Panel Trustee Fraud.

They define fraud as Panel Trustees who recover assets, and divert those assets to the Panel Trustee’s personal enrichment without approval of the court. The operative words are without court approval. Too many cases have emerged where judges approved.

It could be because the bankruptcy judges are rubber stamping cases because the system operates like a cattle call. As an example, see the Smoking Gun case of how Judge Jane McKeag rubber stamped a motion by a trustee that involved flagrant fraud.