Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Gold River businessman gets 17 years for bankruptcy fraud
Author: Joel R. Glucksman
Date: March 11, 2014
Key Contacts
Back
Gold River businessman Steven Zinnel and his wife were divorced in 1999, and as proceedings dragged on, things got ugly. According to the Sacramento Bee, Zinnel told his wife in an angry email in 2001 that he intended to file for bankruptcy, and that she and the ex-couple’s two teenage children would get nothing. The problem is that Zinnel was a successful investor in electrical infrastructure and real estate, and in actuality, held millions of dollars in assets.
Zinnel filed for protection under Chapter 7 of the bankruptcy law in 2005, according to court documents. At the time, he and his attorney, who will also be sentenced, had hidden his assets by putting them in other people’s names, according to the Sacramento Bee, a practice that is highly illegal. In order to disguise his continued income, Zinnel and his attorney funneled money through shell companies so that he would not have to pay child support, which is calculated based on a formula in California, rather than being set by the courts.
Despite having apparently gotten away with the scheme “scot-free,” Zinnel called the FBI and requested an investigation of his ex-wife for allegedly trying to illegally access his private health insurance information, according to Time Magazine. Upon hearing his ex-wife’s side of the story, however, the FBI became much more interested in Zinnel’s bankruptcy filing, quickly unraveling the plot. As Judge Gregory Hollows put it, “having roused the beast, like the professor in Frankenstein, [Zinnel] was soon fighting off his own creation.”
In July 2013, Zinnel was convicted of 15 counts of bankruptcy fraud and money laundering, according to the news source. On March 5, he was ordered to forfeit $2.8 million in assets, pay $500,000 in fines and serve 17 years in prison. “You don’t lie before a court of law,” said Judge Troy Nunley of the U.S. Bankruptcy court in handing down the sentence. “You don’t continue to lie, which is what you did.”
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.