Pulaski County Woman Pleads Guilty to Bankruptcy Fraud

Jessica A. Browning, 44, of Ullin, Illinois (Pulaski County), has pleaded guilty to two counts of bankruptcy fraud, Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois, announced today. A federal grand jury indicted Browning in August of this year as part of the U.S. Attorney’s Office’s continuing effort to crackdown on those who commit bankruptcy fraud in the Southern District of Illinois.

The case against Browning arose out of a chapter 13 bankruptcy case she filed in the federal bankruptcy court in Benton, Illinois, on March 17, 2014. During her plea hearing, Browning admitted that on a document she filed with the bankruptcy court, she intentionally concealed the fact that just three weeks before filing bankruptcy she had received a $12,675.47 worker’s compensation award. Browning also admitted that, at a meeting of creditors in her bankruptcy case, she provided false testimony regarding what she did with the funds from her worker’s compensation award.

Browning pleaded guilty to making a false statement under penalty of perjury in a bankruptcy case and making a false statement under oath in a bankruptcy case. Both crimes carry a maximum sentence of five years in prison and a fine of up to $250,000.

"Abuse of the bankruptcy process by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). "We are grateful for the continued commitment of U.S. Attorney Weinhoeft and our law enforcement partners to combating fraud and abuse in bankruptcy cases." The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois.

Browning will be sentenced on January 30, 2019, at 10:00 a.m., at the federal district courthouse in Benton, Illinois.

The charges resulted from a referral by the U.S. Trustee for Region 10 to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Fairview Heights, Illinois, Office of the Internal Revenue Service – Criminal Investigations, in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.