Indictment — United States v. Henry Young (Eastern District of Pennsylvania, Document 1, filed March 21, 2024)

Summary

This is a one-count indictment in the Eastern District of Pennsylvania, filed March 21, 2024, charging Henry Young with a false statement under oath. The background describes Chapter 13 bankruptcy, the schedules and Statement of Financial Affairs a debtor had to file, and the Chapter 13 trustee's meeting of creditors. Young filed a voluntary Chapter 13 petition in 2019 and, on Schedule I, falsely stated that Young worked for Paris Enterprises as a manager and earned approximately $7,783 per month. At a meeting of creditors Young testified under oath that the filings were true and correct. The charge says Young never worked for or was paid by Paris Enterprises.

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“Indictment — United States v. Henry Young (Eastern District of Pennsylvania, Document 1, filed March 21, 2024).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-2-24-cr-00117-dkt-1-e-d-pa-fe0f103c14/, SHA-256 6b83d229b734036442b41a4f6cf1e1819b40f17bdf90046d87809e9c6b5b1aa7.

Full text

Case 2:24-cr-00117-JHS Document 1 Filed 03/21/24 Page 1 of 6

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF PENNSYLVANIA

UNITED STATES OF AMERICA CRIMINAL NO.24.

DATE FILED: March 21, 2024

HENRY YOUNG VIOLATION:
18 U.S.C. S 152(2) (false statement under
oath - I count)

INDICTMENT

COUNT ONE

THE GRAND JURY CHARGES THAT:

BACKGROUND

At all times relevant to this indictment:

1. Individuals could file for bankruptcy under Chapter 13, 11, or 7 ofthe

U.S. Banlruptcy Code, while corporations were permitted to file for bankruptcy under Chapter

11 or 7 ofthe Bankruptcy Code.

2. A Chapter 13 bankruptcy was also called a wage eamer's plan. It enabled

an individual (the "debtor") with regular income to develop a plan to repay all or part oftheir

debts. Under Chapter 13, a debtor proposed a repayment plan to make installment payments to

creditors over three to five years. During this time the law forbade creditors from starting or

continuing collection efforts. A Chapter l3 bankruptcy case could only be filed by an individual

with "regular income."

3. Chapter 13 offered individuals several advantages over liquidation under

Chapter 7, including the opportunity to save their homes from foreclosure. By filing under this
Case 2:24-cr-00117-JHS Document 1 Filed 03/21/24 Page 2 of 6

Chapter, individuals could stop foreclosure proceedings and perhaps cure delinquent mortgage

payments over time.

4. Because Chapter 13 required a debtor to be able to make payments to

creditors, a frling under this section depended on a debtor's honesty regarding his current and

future income.

5. Debtors who filed bankruptcy petitions under any Chapter ofthe

Bankruptcy Code were also required to complete and frle various Schedules. These included a

Schedule B, "Personal Property"; Schedule C, "Property Claimed as Exempt"; Schedule D,

"Creditors Holding Secured Claims"; Schedule F, "Creditors Holding Unsecured Non-Priority

Claims"; and Schedule G, "Executory Contracts and Unexpired Leases."

6. All debtors who frled a bankruptcy case were also required to complete a

Statement ofFinancial Affairs. The Statement of Financial Affairs required a debtor to disclose

financial data, including all income from any source received within the two years preceding the

commencement of the bankruptcy case; payments or transfers to any creditor made within 90

days preceding the commencement ofthe case; and all other property transferred (other than in

the ordinary course ofbusiness) either absolutely or as security within the one years immediately

preceding the commencement ofthe bankruptcy case.

7. Additionally, a debtor who filed for bankruptcy was required to submit a

declaration, under penalty of perjury, that he had read the summary and schedules that he was

submitting, and that they were true and correct to the best of his knowledge, information, and

belief.

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Case 2:24-cr-00117-JHS Document 1 Filed 03/21/24 Page 3 of 6

8. To determine the length ofa debtor's plan and how much he would be

required to pay to creditors each month, a Chapter 13 debtor was required to complete Official

Form 122C, "Chapter 13 Calculation ofYour Disposable Income," and Official Form 122C-1,

"Chapter 13 Statement of Your Cunent Monthly Income and Calculation of Commitment

Period." Debtors signed both these forms under the penalty of perjury. Together, the forms

required disclosure ofa debtor's average monthly income for the six months preceding the

bankruptcy case and monthly expenses, which were then used to calculate the debtor's required

monthly plan payment.

9. In the United States Bankruptcy Court for the Eastem District of

Pennsylvania, when a debtor filed a Chapter 13 bankruptcy case, the case was automatically

assigned to one of the two standing Chapter 13 trustees in the district. The Chapter l3 trustee

was responsible for, among other things, investigating the financial affairs ofthe debtor and

making reports to the Bankruptcy Court. As part of the process, the Chapter 13 trustee conducted

the section 341 meeting of creditors to examine the debtor's financial position and to confirm the

facts stated by the debtor in the bankruptcy filing. The Chapter 13 trustee also served as a case

disbursing agent by collecting payments fiom debtors and making distributions to creditors.

HENRY YOUNG'S BANKRUPTCY PROCEEDING

10. On or about February l, 2019, defendant HENRY YOUNG filed a
voluntary petition for bankruptcy under Chapter 13 in the United States Bankruptcy Court for the

Eastem District of Pennsylvania. The case was docketed as In re Henry Young, Debtor, Banlcr.

No. 19- 10658. The bankruptcy filing stayed a pending foreclosure action filed by U.S. Bank

3
Case 2:24-cr-00117-JHS Document 1 Filed 03/21/24 Page 4 of 6

National Association (Trustee for the Pennsylvania Housing Finance Agency) against defendant

YOUNG.

11. On or about February 28,2019, defendant HENRY YOUNG filed his
bankruptcy schedules, statement of financial affairs, and declaration conceming the schedules,

all of which were docketed as document l0 in case no. l9-10658. The bankruptcy schedules

required defendant YOUNG to provide an accurate listing ofhis assets and liabilities as of the

date ofthe bankruptcy filing, while the statement offinancial affairs required defendant YOUNG

to set forth changes in his prepetition financial condition for a period of several years before the

bankruptcy filing.

12. On his Schedule I (lncome), filed on February 28,2019, defendant
HENRY YOUNG falsely stated that he worked for Paris Enterprises as a manager and had

worked there since October 2018. Defendant YOLTNG also falsely stated that he eamed

approximately $7,783 per month from Paris Enterprises.

1 3. On or about April 17 , 2019, defendant HENRY YOIING testified at a

meeting of creditors held pursuant to I 1 U.S.C. $ 341 . Prior to testifuing, defendant YOUNG

took an oath to tell the truth.

14. During the meeting ofcreditors, the Chapter 13 trustee assigned to
defendant HENRY YOTING's case asked defendant YOUNG whether the information contained

in defendant YOTING's petition, schedules, and statements was true and correct. Defendant

YOUNG responded, "yes." The Chapter 13 trustee asked defendant YOTING about the 341

Information Request Form that defendant YOUNG filled out that day. This form, which

defendant YOIING signed, stated that defendant YOUNG worked for Parris (spelled differently

4
Case 2:24-cr-00117-JHS Document 1 Filed 03/21/24 Page 5 of 6

than on Schedule I) Enterprises. Defendant YOUNG acknowledged his signature on the form

and the statement that he worked for Parris Enterprises. Defendant YOUNG also described Parris

Enterprises as a hair salon. Defendant YOUNG provided the Chapter 13 Trustee three pay stubs

ostensibly from Illuminations Salon, which was owned by Paris Enterprises.

I5 . On or about April 17 , 2019 , in the Eastem District of Pennsylvania,
defendant

HENRYYOUNG

knowingly and fraudulently made a false statement under oath in a material matter in relation to

a case under Title 11 of the United States Code, namely, In re Henry Young, Debtor, Banlw. No.

19-10658, in that defendant YOUNG testified under oath at the Section 341(a) debtor's

examination and stated that the schedules he filed with the United States Bankruptcy Cou( for

the Eastem District ofPennsylvania were true and correct, when, in fact, he well knew that

Schedule I was false in that he never worked for or was paid by Paris Enterprises.

In violation of Title 18, United States Code, Section 152(2).

A TRUE BILL:

A,^;i*-( /*4-9?
JACQUELINE C. ROMERO
UNITED STATES ATTORNEY

)
Case 2:24-cr-00117-JHS Document 1 Filed 03/21/24 Page 6 of 6

No.

UNITED STATES DISTRICT COURT

Eastem District ol Pennsylvania

Criminal Division

THE LINITED STATES OF AMERICA
VS,

HENRY YOTJNG

INDICTMENT

Counts
18 U.S.C. $ 152(2) (false statement under oath - I count)

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