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Dance Moms’ Celebrity Faces Bankruptcy Scandal

Posted by on Dec 18, 2015

Dance Moms’ Celebrity Faces Bankruptcy Scandal

Dance Moms star Abby Lee Miller has been charged with concealing over $700,000 worth of income gained from her reality television show along with other spinoff projects whilst she was claiming Chapter Eleven bankruptcy, in a move that certainly hasn’t impressed the feds.
Federal prosecutors announced the bankruptcy fraud indictment charges in October against the reality star, full name Abigale Lee Miller. According to the indictment, Miller, 50, filed a plan to reorganise her dance studio back in 2010, and then allegedly came up with a plan to defraud the bankruptcy court by not declaring the full amount of money which she earned from both her television deals, masterclass studio sessions and merchandise sales between 2012 and 2013.

Secret Bank Accounts

The indictment against Miller also suggests that during this period of time she opened bank accounts secretly in which to store the money, hiding income which totaled to around $775,000 and in the meantime gaining better terms in which to restructure her debt as a result.

In a statement, U.S. Attorney David J. Hickton says that criminal prosecution is an appropriate route when debtors use lies and deceit before the court in order to corrupt the bankruptcy process.

Possible Outcome

dance-moms-star-due-in-court-for-bankruptcy-fraud-chargesIf Miller is convicted of the charges brought against her in the indictment, she faces up to five years in prison along with a fine of $250,000 for each count of the indictment, totaling $5,000,000 worth of fines. Special Agent in Charge Scott S. Smith of the Federal Bureau of Investigation’s Pittsburgh Division released a statement saying that allegations of bankruptcy fraud and abuse threaten both the integrity of the bankruptcy process and the public’s trust in the system, which can be a life saver for honest individuals overwhelmed by debt for a number of legitimate reasons. He went on to state that the FBI take their responsibility to pursue any allegations of bankruptcy fraud seriously.

Dance Moms

Dance Moms debuted on Lifetime in summer 2011, and since then the network has also aired three spinoffs of the show. Season five of the show has seen Miller and her dancers travel to Los Angeles, where she opened a new dance studio. Over the past few months, Miller’s Instagram account has seen references to her shooting Season 6 of Dance Moms, although she’s expected to be briefly absent during the upcoming season for the trial.

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Miller has requested a trial by jury and has pleaded not guilty.

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