Leon Fadden, 54, Madison, Wis., was convicted of three counts related to bankruptcy fraud. The jury reached its verdict after 90 minutes of deliberation this afternoon following a two-day trial in federal court in Madison.
Fadden was convicted of fraudulently concealing property in connection with a bankruptcy case. In October 2013, he concealed from his creditors and the U.S. Trustee his interest in two life insurance policies and his interest in the estate of a deceased relative. He was also convicted of making false declarations under penalty of perjury by submitting false Schedules of Assets and Liabilities, and a false Statement of Financial Affairs. Finally, Fadden was convicted of making false statements to an attorney of the U.S. Trustee’s Office in December 2013. Fadden falsely stated that he did not receive any money or inheritance from his mother’s estate, that he did not know anything about insurance proceeds from his mother’s death, and that he did not know who received the proceeds from the sale of his mother’s home. In fact, the evidence showed that Fadden received the insurance proceeds from his mother’s death and a portion of the proceeds from the sale of his mother’s home, in an amount totaling $128,000.
Fadden was originally charged with the first two counts in an indictment returned by a grand jury in August 2015; a superseding indictment returned in January 2016 added the false statements charge.
U.S. District Judge William M. Conley scheduled sentencing for February 1, 2017, at 1:00 p.m. Fadden faces a maximum penalty of five years in federal prison on each count.
The charges against Fadden were the result of an investigation by IRS Criminal Investigation and the Federal Bureau of Investigation, with the assistance of the U.S. Trustee’s Office. The prosecution of this case is being handled by Assistant U.S. Attorneys Meredith Duchemin and Daniel Graber.