The Baltimore Business Journal reported on a Chapter 7 bankruptcy case filed by Alan Fabian.  It seems that Mr. Fabian filed his case in December 2008 claiming to own nearly $4 Million in assets yet owing some $52 Million.  Now that’s a poster child for being “underwater.”  Unfortunately for his victims, he is also the poster child for “you can trust me” just look how charitable I am.

Unfortunately for Mr. Fabian, the Chapter 7 Trustee filed a complaint against Fabian asserting that he should not get a discharge.  That Complaint is known as a “Non-dischargeabilty Complaint.”  Under the bankruptcy code there are a number of reasons that your discharge can be denied.  One of those reasons is that the debts were incurred  as a result of fraud.

The allegations of fraud was the cornerstone of the case against Fabian.  Chapter 7 is designed to give you a “fresh start” but not if you have committed fraud.

It seems that it is alleged that Mr. Fabian was convicted for his participation in a fraudulent scheme to sell and lease back computers.  The claim is that over $32 Million was taken in this scheme and less than $400,000 used to buy the computers.  He had been sentenced to 9 years in prison.