Dance Moms Star Indicted For Bankruptcy Fraud

Abby Lee Miller, choreographer and one of the stars of Lifetime’s “Dance Moms,” has been indicted on charges of bankruptcy fraud, concealment of bankruptcy assets, and false bankruptcy declarations — a 20-count indictment. The press release from the Western District of Pennsylvania U.S. Attorney’s Office can be found here.

From the press release:

According to the indictment, after filing a Petition to Reorganize her dance studio in December, 2010, Miller 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 Miller created bank accounts to hide the income, and instructed others to conceal certain income from the bankruptcy court and Trustee. It is also alleged that Miller made numerous false declarations in monthly operating reports which did not report certain income or underreported certain other business income. The indictment further alleges Miller concealed income totaling approximately $755,492.85 from the Trustee and creditors, and gained favorable terms to restructure debt from her fraudulent acts.

Eeeek, she is facing a total sentence of five years in prison, and a fine of $250,000 or both for each count of the indictment. I initially thought she must have filed Chp. 7 but from a further reading it appears that she is accused of misstatements on the Dance Studio’s MORs, which means she filed Chp. 11 for the business.

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