Husband and Wife Plead Guilty to Bankruptcy-Related Fraud

United States Attorney Laura E. Duffy announced that husband and wife Ronald M. Hannah and Alison K. Hannah, of Fallbrook, California, pled guilty today to bankruptcy fraud-related charges in United States District Court in San Diego before the Honorable William Q. Hayes.

According to admissions during their guilty pleas, in March 2005, the defendants attempted to fraudulently avoid paying their debts by filing a Chapter 7 bankruptcy petition in the United States Bankruptcy Court. In their filings and during the course of the bankruptcy proceeding, the defendants fraudulently concealed and transferred valuable assets, including two Harley Davidson motorcycles, an expensive construction vehicle, and a Ford F-250 truck. Mrs. Hannah also admitted to improperly using the bankruptcy system to prevent the collection of a state court civil judgment against her, her husband, and their company, Millhouse One, LLC.

Mrs. Hannah further admitted to committing bank fraud by presenting a fraudulent bankruptcy court order to Union Bank of California in order to take possession of $60,000 in cashiers’ checks. In total, Mrs. Hannah admitted to an intended loss of over $100,000, and Mr. Hannah admitted to an intended loss of over $50,000.

United States Attorney Duffy thanked the United States Bankruptcy Court for the Southern District of California, United States Trustee Tiffany L. Carroll and her office, and the private trustee appointed in the defendants’ bankruptcy case for their assistance and cooperation with this prosecution.

This case is the product of an investigation by the Federal Bureau of Investigation.

Sentencing for both defendants is scheduled for June 20, 2011, at 9:00 a.m., before Judge Hayes.

Case No. 10-CR-0977-WQH

DEFENDANTS

Ronald M. Hannah, Age: 60, Fallbrook, CA

Alison K. Hannah, Age: 55, Fallbrook, CA

SUMMARY OF CHARGES

Both Defendants:

Count 4: Title 18, United States Code, Section 152(1)—Concealment of Assets

Counts 7 and 8: Title 18, United States Code, Section 152(3)—False Statement Under Penalty of Perjury

Count 11: Title 18, United States Code, Section 152(7)—Fraudulent Transfer of Assets

Maximum penalties for each count: five years in prison, $250,000 fine, restitution for victims.

Alison Hannah only:

Count 2: Title 18, United States Code, Section 157(1)—Bankruptcy Fraud

Maximum penalties: five years in prison, $250,000 fine, restitution for victims.

Count 3: Title 18, United States Code, Section 1344—Bank Fraud

Maximum penalties: 30 years in prison, $1,000,000 fine, restitution for victims.

Ronald Hannah only:

Count 10: Title 18, United States Code, Section 152(7)—Fraudulent Transfer of Assets

Maximum penalties: five years in prison, $250,000 fine, restitution for victims.

INVESTIGATIVE AGENCY

Federal Bureau of Investigation