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
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
How to Effectively Use Contracts to Manage Risk
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Author: George McGowan
Understanding Portability for Estate and Gift Tax
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Author: Marc J. Comer
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
Author: Marc J. Comer
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.