Montgomery County Couple Sentenced in Bankruptcy Fraud Conspiracy
Houston
   
 
More Today's News:
ߦ   IN MEMORIAM: Sergeant Royce Eugene McQuaig II
ߦ   Childs Body Found on Galveston Beach, No Identity
ߦ   Arrest Made in Murder Case from San Luis Resort
ߦ   THE ELEVEN - Television series continues about the murders linked to Edward Harold Bell
ߦ   Coast Guard responds to barge fire offshore of Port Aransas
ߦ   Fake COP Pulled Over Real Off-Duty Police Officer On Texas Road
ߦ   Former HPD officer indicted for shooting neighbor in 2016
ߦ   Officer shoots suspect after woman fatally stabbed in north Houston apartment
ߦ   Alabama executes Montgomery cop-killer Torrey Twane McNabb
ߦ   Coast Guard interdicts lancha crew illegally fishing in U.S.
ߦ   Constable Deputies Jail Man For Evading Arrest
ߦ   Constables arrest DWI suspect who crashed into a residence
ߦ   Constables arrest two local suspects for conducting fraudulent vehicle inspections
ߦ   Corpus Christi Man Heads to Prison for Possession of Child Pornography
ߦ   Crimes, Criminals and The Cops Who Chase Them
ߦ   Houston Woman Sentenced to Federal Prison for IH-10 Drug Trafficking
ߦ   Hurricane Harvey Ravaged Eastern District of Texas Establishes Disaster Fraud Task Force to Combat Fraud and Abuse
ߦ   Jim Schweitzer seeking Re-Election for Justice of the Peace Precinct 2
ߦ   Longview Man Found Guilty of Student Financial Aid Fraud During Federal Trial
ߦ   Paris Police Dept - Daily Arrests/Activity Summary
ߦ   Taylor PD awarded state grant to begin a Victim Services Program
ߦ   Texas man finds his puppy hanged in tree, police investigate
ߦ   Texas Sheriff Calls Out CPS After Foster Dad who Took in 180 Girls is Accused of Sex Abuse
ߦ   Two Jailed In Texas City Drug Raid
ߦ   Hero Down: Buffalo Police Officer Craig Lehner's Body Recovered
ߦ   Australians are buying guns on the dark web, report reveals
ߦ   Common Internet of Things Devices May Expose Consumers to Cyber Exploitation
ߦ   Constable Deputies Arrest Cell Phone Store Robbers
ߦ   Convicted Fugitive Gets Significant Sentence After Re-capture
ߦ   District Attorney Unveils Community Actions Plans
ߦ   FBI nabs 2 women suspected of bank heist try dressed as nuns
ߦ   Forney Man Sentenced to 151 Months in Federal Prison for Drug Offense
ߦ   Fort Worth Man Admits to Child Sex Trafficking
ߦ   Fourth Texas Man Pleads Guilty to Hate Crime for Assault Based on Victim’s Sexual Orientation
ߦ   Fugitive Lawyer and Accomplice Indicted for Escape

   Next >>
 
Search Archives:

HOUSTON, Texas - A Conroe, Texas couple has been sentenced for bankruptcy fraud conspiracy in the Southern District of Texas, announced Eastern District of Texas Acting U.S. Attorney Brit Featherston.

 

            Richard Kent Harris, 74, and Darlene Ann Riley, 59, pleaded guilty on Mar. 8, 2017, to conspiracy to commit bankruptcy fraud.  Harris was sentenced to 10 months in federal prison today by U.S. District Judge Kenneth M. Hoyt.  Riley was sentenced to 12 months of home confinement.

 

According to information presented in court, on June 22, 2012, Richard Harris entered into a contract with a home builder to construct a custom home for Harris and his wife, Darlene Riley. In August 2012, Harris and Riley became embroiled in a dispute with the home builder over the design of their house and a lawsuit ensued.  The lawsuit went to arbitration, where Harris and Riley were ordered to pay the home builder $54,686.55 in damages.  Approximately two weeks later Harris and Riley consulted with a bankruptcy attorney. 

 

   Harris and Riley filed for divorce on Apr. 1, 2013, but continued to reside at the same address.  In the months leading up to the divorce filing, Harris and Riley made substantial charges on their credit card, which was used for their mutual benefit.  On Feb. 26, 2013, Riley withdrew $67,000 from the joint checking account she shared with Harris and deposited it into her own sole checking account. 

 

Following Riley’s filing for divorce, a property settlement was entered into between Riley and Harris.  All material assets of the marriage were awarded to Riley, which included a 2004 Jaguar XK8, a 2007 beachcomber boat, a utility trailer, all of their furnishings, 43 paintings, jewelry, 2012 federal income tax refund, and half of his net federal pension.  On June 12, 2013, Harris also transferred his interest in their homestead by special warranty deed to Riley.  The divorce was finalized on June 3, 2013. 

 

On Oct. 15, 2013, Harris filed for Chapter 7 bankruptcy in the Southern District of Texas.  Harris claimed debts totaling $173,305.19 to various banks, credit cards, the home builder and other unsecured creditors.  Harris failed to disclose on his bankruptcy petition the transfer of his homestead interest to Riley, the vehicle transfers, the sale of a truck for $5,500, and the $67,000 withdrawal from his joint account with Riley.  A review of Riley’s bank records found that the $67,000 she transfered into her solely owned bank account was spent on mortgage payments and other joint household expenses.  Riley’s transfer of the $67,000 from the joint account with Harris was done to hide those assets from being used to repay Harris’s creditors in the Chapter 7 bankruptcy.  Further, Harris filed the bankruptcy petition with knowledge that the transfer was not disclosed to his creditors in the bankruptcy petition, as is required by law.

           

            The case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorneys Christopher T. Tortorice and Paul Hable.


Davilyn Walston

Public Information Officer/Law Enforcement Coordinator

U.S. Attorney's Office

Eastern District of Texas

Post a comment
Name/Nickname:
(required)
Email Address: (must be a valid address)
(will not be published or shared)
Comments: (plain text only)
Printer Friendly Format  Printer Friendly Format    Send to a Friend  Send to a Friend    RSS Feed  RSS Feed
  Facebook   Share link on Twitter Tweet  
© 1999-2017 The Police News. All rights reserved.