Buying a used Nissan Altima for less than $25,000 may land an Ohio man in prison for five years. He could also serve on supervised release for up to three years and be fined as much as $250,000. And he can’t file another bankruptcy case for fifteen years.
Wayne Rummel filed a Chapter 13 bankruptcy petition in West Virginia in July 2023. While he was a Chapter 13 debtor, he borrowed the money to buy the Nissan. The U.S. Attorney’s press release says that he knew he was required to obtain permission to do so, either from the U.S. Trustee or the Bankruptcy Court.
Instead, he created a counterfeit court order approving the financing and emailed it to his lender. He actually created a copy of the judge’s signature on the order. After the bankruptcy judge referred the case to the U.S. Attorney, Rummel admitted this and pled guilty to falsifying recorded information relating to the property or financial affairs of a debtor in bankruptcy. This was in violation of 18 USC §152(8).
This was the second Chapter 13 for Rummel and his wife. They had filed in 2019 and then moved to dismiss the case when they could not afford the proposed plan payments. The 2023 case was confirmed, but earlier this year, it was dismissed, not only for delinquent plan payments, but because of the debtors’ bad faith, evidenced by the fake order. The judge dismissed the case with prejudice, barring them from filing another case for fifteen years.
Rummel will face sentencing on January 5, 2026. It does not appear that his wife faces any criminal charges.
The lesson here is that bankruptcy crimes are real, and those who commit them will be punished. It doesn’t require forging the judge’s signature. Lying on petitions and schedules can lead to criminal penalties. Debtors must beware, and creditors must be vigilant in reviewing petitions, schedules, and statements of financial affairs.
At Dalton & Tomich, we represent creditors in bankruptcy and assist them in analyzing the veracity of debtors’ filings. For more information, contact us today.
