LYNCHBURG (WSLS 10) – A Lynchburg man faces up to five years in prison after pleading guilty yesterday to a federal bankruptcy fraud charge, according to United States Attorney John P. Fishwick Jr.
Randall K. Falwell, 56, of Lynchburg, waived his right to be indicted and pleaded guilty to a one-count Information charging him with bankruptcy fraud on Monday.
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At sentencing, Falwell faces a maximum possible sentence of up to five years in prison and/or a fine of up to 250,000.
"The bankruptcy laws of the United States are designed to help those in need get out of debt and emerge from dire circumstances," United States Attorney Fishwick said. "Bankruptcy fraud is a real crime with real circumstances and those who omit these offenses should be warned, if you lie in your bankruptcy proceedings, we will prosecute you."
According to evidence presented at the hearing, Falwell knowingly and fraudulently made a false statement under oath and in relation to a chapter 13 bankruptcy proceeding. Specifically, Falwell falsely claimed that he owned partial interests in real property without disclosing to the bankruptcy trustee that he had sold the properties some months earlier.
The investigation of the case was conducted by United States Trustee's Office. Assistant United States Attorney Jennie L. M. Waering and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.