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Wyatt Stokes pleads guilty in federal court |
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Thursday, 10 April 2008 |
Bill Mercer, U.S. Attorney for the District of Montana announced that during a federal court session in Great Falls, before U.S. District Judge Sam Haddon, Wyatt R. Stokes, a 34-year-old from Conrad, pled guilty to bankruptcy fraud.
Sentencing is set for July 7.
In an offer of proof filed by the U.S., the government stated it would have proved at trial the following:
In February of 2002, Stokes filed for Chapter 13 bankruptcy.
His Chapter 13 plan was confirmed on Oct. 1, 2002, and he received his discharge on Sept. 8, 2005.
Just before the bankruptcy trustee filed Stokes’ discharge with the bankruptcy court, the owner of Bouma Truck Sales informed the trustee that Stokes had been working for him and he suspected that Stokes had concealed income from the trustee.
Documentation provided by Bouma Truck Sales showed Stokes earned $218,076.55 from December 2003 through December 2005.
Stokes indicated on his bankruptcy schedules that his gross income was $1,500 per month and his spouse’s was $1,853 per month.
Based on this reported income, the trustee arranged Stokes’ Chapter 13 plan to include $200 monthly payments of 40 months.
The trustee stated that he made it very clear in writing and verbally that Stokes was required to report any significant change in income so his payment plan could be amended if necessary.
The trustee also explained that he had no knowledge of Stokes’ employment with the Bouma Truck Sales unit until the owner spoke to him in 2005.
The owner of Bouma Truck Sales specifically stated that Stokes worked for him from December 2003 through December 2005. The owner produced monthly payment records and 2004-05 W-2’s to confirm Stokes earnings.
When Stokes was confronted with records of his income, he confessed to knowing he had an obligation to report his additional earnings and that he intentionally concealed his income checks from the trustee.
Stokes faces possible penalties of five years in prison, a $250,000 fine and three year’s supervised release.
The investigation was conducted by the U.S. Secret Service and prosecuted for the U.S. by assistant U.S. Attorney Ryan Archer.
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