Florida Bankruptcy Trustee Charged with $16M in Fraud

A bankruptcy trustee in South Florida has been charged with misappropriating at least $16 million by writing unauthorized checks from bankruptcy accounts for which she was responsible, according to the Miami Herald.   Marika Tolz has been charged with wire fraud conspiracy.

In bankruptcy cases, which are governed by federal law, the bankruptcy court appoints a trustee to act on behalf of creditors (i.e., those who have loaned or advanced money to the debtors filing for bankruptcy protection under Chapter 7, 11, 12 or 13 of the U.S. Bankruptcy Code).  More…

The lawyers at PERENICH The Law Firm, who  have over 20 years of experience handling consumer and business bankruptcy cases, are deeply dismayed and disappointed by these charges of misconduct.    A bankruptcy Trustee is bound by a code of ethics, as all lawyers are required to follow.   If these allegations are shown to be true, it would clearly undermine the confidence and public trust that is integral to U.S. bankruptcy laws, which are designed to give honest people a fresh start.