Wednesday, October 14, 2015

'Dance Moms' Star Abby Lee Miller Charged with Bankruptcy Fraud; She Hid Assets, Lied About Income

“Dance Moms” star Abigale "Abby" Lee Miller has been charged with hiding $775,000 worth of income from the Lifetime network reality show and spinoff projects during her Chapter 11 bankruptcy. The 50-year-old was indicted by a federal grand jury in Pittsburgh on charges of bankruptcy fraud, concealment of bankruptcy assets, and false bankruptcy declarations. According to the indictment (which you can read, below), after filing a Petition to Reorganize her dance studio in December 2010, Abby then schemed to defraud the bankruptcy court by concealing income she earned between 2012 and 2013 from her performances on the reality TV show “Dance Moms” and related spinoff TV shows as well as from masterclass dance sessions and merchandise and apparel sales. The indictment alleges that Abby created bank accounts to hide the income and instructed others to conceal certain income from the bankruptcy court and Trustee. It's also alleged that Abby made numerous false declarations in monthly operating reports which did not report certain income or underreported certain other business income. The indictment further alleges Abby concealed income totaling approximately $755,492.85 from the Trustee and creditors and gained favorable terms to restructure debt from her fraudulent acts. If found guilty, she faces up to five years in prison and a $250,000 fine or both for each count of the indictment.

Here's the indictment.

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