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Millionaire tries to hide money to avoid spousal support

On Behalf of | Feb 11, 2015 | Spousal Support

When you are facing a spousal support hearing, whether you are asking for money or being asked to pay, you don’t want to get on the wrong side of the law. There can be repercussions if you do so. A man decided to try and fool a judge into believing that his multi-million dollar estate was in arrears, and he didn’t have any money left. This is called a “pump and dump” scheme, and it didn’t work.

A man who inspired the movie “Boiler Room” and worked for a major penny stock investment company that has branches all over Texas, was found guilty of mail fraud in 1994. During this time, his wife of 15 years tried to divorce him and make him pay support for herself and their three children. He claimed that he made only $130,000 a year, but had monthly expenses of $22,000 that includes a monthly rental cost of $4,500. He also has a cook, a housekeeper, a driver and private tutors for his children. It just didn’t add up.

He said that he couldn’t remember what happened to the $1 million marital investment account or the $50,000 that he paid for a famous bar in the Lower Manhattan area. The bar is well-known for the fact that Aaron Burr and Alexander Hamilton celebrated July 4th there in 1804 and a week later had their famous duel.

His ex-wife states that he keep diverting money and moving it around so it is hard to find. She says he maneuvers it to gain additional time to dispose of it unlawfully. The judge was not fooled and noted that the man had gone so far as to allow a 53-foot boat to go into foreclosure so that his wife could not access any share of that asset.

If you are facing a situation dealing with divorce and spousal support, you want an attorney who will protect your rights. Calling a legal professional may be a good idea, especially one who knows the laws of Texas and can assist you in getting or keeping what is rightfully yours.

Source: New York Post, “‘Boiler Room’ felon tried to swindle wife out of millions” Julia Marsh, Feb. 09, 2015


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