Posted by Daniella Bucci.
Abby Lee Miller, owner of Abby Lee Dance Company and known for her loud mouth on the Lifetime reality show, Dance Moms, has been indicted on bankruptcy fraud charges. Miller hid more than $755,000 of earned income from Dance-Moms-related shows, dance sessions and merchandise sales between 2012 and 2013 in secret bank accounts created solely for the purpose of hiding the income. Her charges consist of bankruptcy fraud, false bankruptcy declarations and concealment of bankruptcy assets. Miller claimed bankruptcy to “save her studio,” and perhaps creating a “’fresh start,’” instructing her accountant and partner via email, “’LET’S MAKE MONEY AND KEEP ME OUT OF JAIL’” and allegedly wrote “’DON’T PUT CASH IN THE BANK!!’” Miller could face up to five years in prison, which is the statute of limitations for federal crimes, and a $250,000 fine for each of her 20 indictment counts.
Miller’s crime, bankruptcy fraud, is a crime under the Bankruptcy Act of 1867. Miller attempted to defraud the bankruptcy court by trying to discharge her debt, as she was fraudulently conveying her asserts in secret bank accounts which she would then claim after declaring bankruptcy. Forensic accountants, who are skilled and experienced professionals in detecting fraud, may have assisted in unraveling this case by tracing the fraud scheme, which for Miller consisted of detecting the concealment of assets totaling over $755,000. The forensic accountants may have questioned why she does not have a larger amount of cash in the bank, being knowledgeable of her successful business ventures, and dug deeper from there. Miller’s arraignment took place on November 5 in US District Court in Pittsburgh.
Daniella is a graduate student in accounting at the Feliciano School of Business, Montclair State University.