A Stratford, Conn., man faces up to five years in prison after he pleaded guilty Monday to bankruptcy fraud, according to the Department of Justice.
Darryll Harmon, 44, of Stratford, waived his right to be indicted and pleaded guilty to one count of bankruptcy fraud in court on Monday.
Court documents and statements indicated that Harmon was in default on his insured mortgage, which was held by the Connecticut Housing Finance Authority. In Jan. 2009, CHFA began foreclosure proceedings on the property, the DOJ said.
From January 2009 to October 2013, Harmon filed seven petitions for bankruptcy in U.S. Bankruptcy Court for the District of Connecticut. These petitions put a stay on the foreclosure process until the bankruptcy proceedings were resolved.
The bankruptcy court dismissed all but one of the petitions because Harmon failed to pay filing fees and to file required information, the DOJ said.
On July 25, 2014, the bankruptcy court dismissed Harmon’s seventh petition. Along with this dismissal, the court barred Harmon from filing for bankruptcy for the two-year period of July 17, 2014, to July 17, 2016.
Regardless of this barring, Harmon filed another bankruptcy petition on July 1, 2016, the DOJ said. He filed this petition in the name of another individual who lived in Texas and falsely listed his home as the other individual’s residence, forging the individual’s signature on the petition.
The individual living in Texas did not authorize the petition to be filed and did not have knowledge of any of the filing procedure.
The false bankruptcy petition caused another automatic stay on the foreclosure sale of Harmon’s home. This stay, the DOJ said, prevented CHFA from foreclosing on the residence and collecting the debts owed.
The DOJ said bankruptcy fraud can carry a maximum term of five years in prison.
Harmon was released on a $75,000 bond. A sentencing date has yet to be scheduled.
Tribune Content Agency