WATTS : 3 Plead Not Guilty in False Bankruptcy Filing Schemes
Three Los Angeles-area residents pleaded not guilty Monday to charges that they operated a Watts-area firm that filed false bankruptcies on behalf of clients facing eviction.
Eugene and Karen Hawkins and Sandra Welch were indicted March 16 on charges of falsely representing their company, HDI Financial and Legal Services, as a legal aid firm that could help people who were about to be evicted.
But the defendants were actually placing clients into bankruptcy without their knowledge and using false Social Security numbers and other false information on bankruptcy petitions, according to U.S. Atty. Nora Manella. The defendants also used customers’ names and Social Security numbers to obtain credit cards, cars and other goods for themselves, Manella said.
The Hawkinses also were charged with running a fraudulent tax-preparation business in which they made up phony businesses for their customers, claiming nonexistent business deductions.
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