Man indicted in attempt to defraud 28 US federal bankruptcy courts out of $1.8M in unclaimed funds

A Maryland man accused of trying to defraud 28 federal bankruptcy courts out of more than $1.8 million in unclaimed funds has been indicted by a federal grand jury in Puerto Rico. The U.S. Attorney’s Office said Tuesday that the alleged scheme targeted courts from Alabama to Wisconsin and even Hawaii and operated from 2022 to April 2024. Officials said the suspect used an electronic records system to search for bankruptcy cases with unclaimed funds and then submitted fake applications to obtain the money. The U.S. Bankruptcy Court for the District of Puerto Rico reported the alleged scheme to federal authorities.