FOR IMMEDIATE RELEASE
November 29, 2006
www.usdoj.gov/usao/aln

DORA WOMAN INDICTED FOR ALLEGATIONS OF BANKRUPTCY FRAUD

BIRMINGHAM, AL - MILRED A. COSTON was indicted today in U.S. District Court and charged with two counts of making false oaths or accounts and one count of perjury.

According to the indictment COSTON, 47, of Dora, Alabama, filed for a Chapter 7 bankruptcy in the United States Bankruptcy Court for the Northern District of Alabama, Southern Division on June 3, 2004. A bankruptcy trustee is appointed in Chapter 7 cases to administer the case and liquidate the debtor’s nonexempt assets. COSTON was required to file testimony under oath in order for the Trustee to find out what had happened to more than $100,000.00 which was part of COSTON’s bankruptcy estate.

In August 2005 COSTON declared under oath that $75,000 was reported stolen by her daughter. The money was allegedly in a locked box in her daughter’s car truck which was broken into while the daughter was at the beach. On October 25, 2005, COSTON willfully suborned and procured her daughter to commit perjury by repeating the false story about the theft.

“The Bankruptcy Court operates as any other Court with regard to fraud,” states U.S. Attorney Alice H. Martin. “Fraud as well as allegations of perjury are seriously prosecuted in federal court.”

The penalty for making false oaths is imprisonment of not more than 5 years and a fine of not more than $250,000, on each count charged. The penalty of perjury is also not more than 5 years imprisonment and a fine of $250,000.

“Bankruptcy fraud ultimately costs creditors hundreds of thousands of dollars every year,” states Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation. “Bankruptcy Fraud will remain a priority for the FBI.”
The investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Carolyn Steverson is prosecuting this matter on behalf of the U.S. Government.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

United States Attorney’s Office Press Releases are also on the Internet visit www.usdoj.gov/usao/aln
Jill Ellis, Public Information Contact, 205-244