Peter Henning over at the White Collar Crime Prof Blog notes this Justice Department press release the other day announcing a wide-ranging crackdown on bankruptcy fraud, although none of the cases appear to have been landed in Houston:

United States Attorneys have filed criminal charges against 78 individuals in 69 separate prosecutions in 36 judicial districts on a variety of federal bankruptcy fraud and related counts, including 18 cases charged Tuesday, Deputy Attorney General Paul J. McNulty, announced today. The announcement is the culmination of ìOperation Truth or Consequences,î a nationwide sweep that demonstrates the breadth of enforcement actions taken by the Department of Justice to combat bankruptcy fraud and protect the integrity of the bankruptcy system. [. . .]
Collectively, the Operation Truth or Consequences bankruptcy fraud sweep includes charges filed against nine attorneys, two bankruptcy petition preparers, and one former law enforcement officer; alleged concealment of more than $3 million in assets; use of false Social Security numbers and false identities; submission of forged documents and use of false statements; defrauding of individuals whose homes were in foreclosure; fraudulent receipt of government loans and benefits; and various other unlawful acts.

I have no idea whether the DOJ’s initiative is justified. But bankruptcy is strong medicine with serious side effects, and the exposure to criminal liability in bankruptcy is often underestimated by debtors and their counsel. It shouldn’t be.