ELIZABETH CITY—United States Attorney Thomas G. Walker announced that in federal court on June 6, 2012, Gregory Scott Sipe, 54, pled guilty before United States District Judge Terrence W. Boyle to destruction, alteration, or falsification of records, in violation of Title 18, United States Code, Section 1519.
According to the February 8, 2012 criminal indictment, Sipe filed a Chapter 7 bankruptcy petition in the Eastern District of North Carolina in which he was required to file schedules that included a listing of personal property. The schedules are required to be signed under the penalty of perjury. In August 2010, Sipe listed several guitars with a net value of $10,000. It was later learned that the guitars in his collection numbered over 300. Also, Sipe did not list his amplifiers and sound equipment in the filed schedules.
According to the report of sale in the bankruptcy proceeding, on April 30, 2011, the guitars were sold by the Chapter 7 trustee. The guitars brought approximately $897,820 in gross proceeds.
At sentencing, Sipe faces up to 20 years’ imprisonment, followed by up to three years of supervised release, and a fine of up to $250,000.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney S. Katherine Burnette prosecuted the case.