Online Payday Loan Company Owner Pleads Guilty To Bankruptcy Fraud USAO-WDMO

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KANSAS CITY, Mo. – A man from Mission Hills, Kansas, pleaded guilty today in federal court to a bankruptcy fraud scheme related to his online payday loan company.

Del H. Kimball, 53, waived his right to a grand jury and pleaded guilty before United States District Chief Justice Beth Phillips to one count of bankruptcy fraud.

Pleading guilty today, Kimball admitted he was engaged in a scheme to defraud bankruptcy court by concealing assets, bank accounts and claims against third parties, and making false statements and claims. material omissions regarding its assets and financial transfers to and from third parties. .

Three of Kimball’s creditors filed for involuntary bankruptcy against Kimball, his partner, and their company, LTS, an online payday loan company, on August 5, 2015. The claims of the three creditors totaled more than 15 millions of dollars.

The US bankruptcy trustee filed a lawsuit denying Kimball’s discharge on March 10, 2017, and the bankruptcy court held a trial on January 11, 2018. After the trial, US bankruptcy judge Cynthia Norton ruled that Kimball had transferred property with the intention of hindering, delaying or defrauding creditors, made numerous false oaths in connection with this bankruptcy case and concealed property from the bankruptcy estate. The court ruled that the evidence was “overwhelming” that Kimball had made false affidavits. The court rejected Kimball’s release.

For example, Kimball failed to disclose at least $ 69,000 in transfers to relatives. He undervalued collectibles by $ 24,000. He omitted transfers to Claw Consulting, LLC, another company he owned (with no employees). Kimball opened a bank account for Claw Consulting and had the bank statements sent to a lawyer at the lawyer’s business address in order to hide the income and sales proceeds he wanted to hide from creditors.

Under federal law, Kimball can face a sentence of up to five years in federal prison without parole. The maximum legal sentence is prescribed by Congress and is provided here for your information, as the defendant’s sentence will be determined by the court based on the Sentencing Advisory Guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of an investigation into the presentation by the United States Probation Office.

This case is being continued by Assistant US Attorney Kathleen D. Mahoney. He was investigated by the FBI and the United States Bankruptcy Trustee.

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