Bankruptcy or Divorce Resulting from Fraud
Too few assets remaining to pay creditor and investor claims, an entity will
generally file bankruptcy. Similarly, when one marriage partner discovers that
his or her spouse has committed fraud, he or she often seeks divorce to
salvage a reputation or because of a lack of trust in the partner.
Bankruptcy and Divorce used to perpetuate Fraud
Some debtors use the “automatic stay” period to perpetuate fraud
Bankruptcy and Divorce used to conceal Fraud
Generally results in the books and records of the debtor or marital partner being
destroyed, inaccurate, or hard to locate.