KC payday loan mogul jailed for bankruptcy fraud
A Kansas City payday loan business owner was sentenced in federal court to one year and one day in prison on Wednesday after pleading guilty to filing a false bankruptcy return as he sought to get rid of $ 7.5 million in debt.
Del Hodges Kimball, 54, pleaded guilty in January to a single count of bankruptcy fraud. In addition to his prison term, Kimball is ordered to pay more than $ 900,000 in restitution, the United States Attorney’s Office for the Western District of Missouri mentionned.
Authorities alleged he spent two years lying about his financial situation while retaining assets he secretly owned to avoid repaying his lenders. In his plea, Kimball admitted his scheme was concocted to defraud bankruptcy court by hiding assets, bank accounts and making false statements, federal prosecutors said.
Acting U.S. attorney Teresa Moore has said the bankruptcy system Kimball has admitted to exploiting relies on the honesty, openness and precision of those in debt and seeking a fresh start.
“This defendant mocked the system in the hope that he could pay off over $ 7.5 million in debt while still maintaining a luxurious lifestyle for himself,” Moore said. said in a statement.
The criminal charges related to a personal bankruptcy case brought by Kimball in 2015. Kimball and the payday loan company LTS Management, of which he co-owned, were forced into bankruptcy by creditors claiming to owe millions of dollars in bankruptcy. investments in payday loans.
In 2017, a bankruptcy trustee accused Kimball of concealing assets, bank accounts and income from his bankruptcy filings, The Star previously reported. Debtors in bankruptcy are expected to reveal all aspects of their financial situation.
These omissions, according to the trustee, included his sale of a warehouse for nearly $ 1 million, the sale of three cars for over $ 120,000, eight wristwatches worth over $ 29,000 and a painting by Rolling Stones guitarist Ronnie Wood.
All the while, Kimball claimed to have lost millions of dollars in 2013 and 2014, when he actually had gross income of almost $ 160,000 in 2013 and over $ 213,000 in 2014, the federal prosecutors. He also admitted to channeling profits of hundreds of thousands of dollars into his wife’s personal bank account to hide his wealth from creditors and federal authorities.
Steve Vockrodt of The Star contributed to this report.