Articles Posted in Bankruptcy

Veteran financial fraud investigators had never seen anything like it before: A bankruptcy scam in which an Indiana woman stole her husband’s identity—while they were still married—and began to loot his 401(k) retirement fund and other assets.

“This was certainly a unique case,” said Special Agent Doug Kasper, who supervised the investigation from the FBI’s Indianapolis Division. Even after 58-year-old Patricia Bippus-Allen was sentenced to five years in federal prison in July after pleading guilty to conspiracy to commit bankruptcy fraud, subornation of perjury, wire fraud, and aggravated identity theft, investigators remain uncertain about her motive or what she did with the money.

What is certain, however, is that Bippus-Allen devised an elaborate bankruptcy fraud to gain access to her husband’s wages, and she made multiple unauthorized withdrawals from his 401(k) retirement account—all with the help of her brother, who impersonated her husband.