Sylmar : Lawyer Admits Guilt in SBA Fraud Attempt

A Sylmar attorney pleaded guilty Monday to fraud charges stemming from his attempt to conceal property pledged as collateral to the Small Business Administration before filing a bankruptcy petition on behalf of a client, the SBA announced.

Bernard J. Berry, 52, was charged with two counts of fraudulently transferring business assets belonging to his client, Marjorie Hey, before helping her file for bankruptcy. According to Assistant U.S. Atty. Michael J. Gennaco, Berry did so hoping to conceal the equipment from the SBA and the future bankruptcy trustee of Hey’s Valencia business, Hey Printing and Typography.

“This is a particularly egregious case because it involves an attorney who attempted to use his knowledge of bankruptcy proceedings to profit at the expense of the U.S. government,” Steve Marica, assistant inspector general for SBA investigations, said in a statement. “We are grateful to Ms. Hey for her courage in helping us expose this fraud.”

Berry, scheduled to be sentenced March 8, faces up to 10 years in prison and a $500,000 fine.