Corvallis Man Pleads Guilty to Bankruptcy Fraud

Bankruptcy Fraud Scheme Involved Obtaining $380,000 by Impersonating Family Members and Losing the Funds by Gambling

EUGENE, OR—Viengkham Virasak, 44, of Corvallis, Oregon, pleaded guilty May 26, 2011, in U.S. District Court to fraudulently obtaining more than $384,000 of debt in his family members' names, and attempting to fraudulently discharge that debt by filing false bankruptcy petitions in those family members' names.

According to court documents, defendant admitted using his family members' financial accounts without their knowledge to obtain more than $380,000 in debt. He did this to feed his gambling addiction. To conceal this fraud, defendant attempted to discharge the mounting debt by filing fraudulent bankruptcy petitions in the names of his family members, and by impersonating them in various bankruptcy proceedings.

Defendant signed the false bankruptcy petitions as his family members, and also admitted to impersonating one of them at a bankruptcy proceeding. Defendant admitted that he appeared at a bankruptcy hearing, pretending to be one of his family members, and falsely testified under oath that the bankruptcy petition was true. Defendant admitted that his false testimony caused the U.S. Bankruptcy Court for the District of Oregon to actually discharge approximately $87,500 of debt that defendant had fraudulently obtained in the name of a family member. Defendant also admitted that he attempted to discharge the remaining $296,500 in the names of other family members, although those efforts were not successful because his fraud was discovered.

U.S. Attorney Dwight Holton remarked, "This defendant's conduct harmed not only the individual victims of the fraud, but also the courts and individuals who truly need and are entitled to protection under our bankruptcy laws. When you lie, steal, and cheat, you put the entire system in jeopardy, and you need to know that we will hold you accountable."

Sentencing is set for August 4, 2011, at 9 a.m. before U.S. District Judge Ann Aiken. The maximum penalty for bankruptcy fraud is five years in prison and a $250,000 fine, and the maximum penalty for the fraud is 10 years in prison and a $250,000 fine.

This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.