MOBILE WOMAN SENTENCED FOR LYING TO BANKRUPTCY COURT

MOBILE, AL – A United States District Judge sentenced a woman to five years of probation for lying in a Bankruptcy Court proceeding.

According to court documents, in April 2023, Lucinda “Lou” Miller, 48, of Mobile, was convicted of making false statements under oath in a bankruptcy proceeding. United States District Judge Terry F. Moorer sentenced her to be supervised by a United States Probation officer for five years, the first year of which she will be on home confinement with electronic montoring.

According to court records filed in connection with her guilty plea, Miller was in Chapter 13 bankruptcy in 2020, when she obtained the court’s permission to buy a car. In a written order, the bankruptcy judge authorized Miller to spend no more than $18,000 on this purchase. In a ploy to unlawfully squat in a home, Miller offered to purchase a home for $450,000. When the seller’s realtor pressed Miller’s realtor to provide proof of funds for the purchase, Miller delivered to her realtor a falsified order purporting to authorize her to purchase a home for up to $500,000, altered from the legitimate order permitting her to buy a car. Miller’s realtor then provided the false court order to the seller’s realtor. The seller’s realtor contacted the Bankruptcy Court Clerk’s office to verify the order's validity. The clerk’s office notified the court of the fake order, and ultimately, Miller lied under oath in a bankruptcy proceeding when she said she knew nothing about it. Miller, who has filed for bankruptcy in Mobile eleven times since 1995, has been barred by the bankruptcy court judge whose order she faked from filing for bankruptcy anywhere in the United States for 30 months due to her abuse of the bankruptcy court proceedings.

“The bankruptcy court is a mechanism for people in financial trouble to seek a fresh start by liquidating their assets or getting the court’s protection to extend the time to pay back their creditors,” said Sean P. Costello, United States Attorney for the Southern District of Alabama. “This defendant abused the bankruptcy court and exploited its authority for her own benefit when she ginned up a bogus court order and then lied about it under oath. With our law enforcement partners, we stand ready to protect bankruptcy proceedings by prosecuting those who lie and jeopardize the court system's integrity.”

Assistant U.S. Attorney Alex F. Lankford prosecuted the case on behalf of the United States. The Federal Bureau of Investigation investigated the case. Bankruptcy Fraud or lying under oath in bankruptcy proceedings can be reported to FBI Mobile at 438-3674.