Used Car Dealer Convicted of Bankruptcy Fraud

[CarDealerCheck]

Nazer Ali Haidar, who owned MNJ Used Cars in Wichita, was convicted Thursday on federal charges of bankruptcy fraud.

A federal jury found Haidar guilty of one count of making false statements in a bankruptcy proceeding and one count of bankruptcy fraud.

"Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system," said Richard Wieland, U.S. Trustee for Kansas, Oklahoma, and New Mexico. "We appreciate the cooperative efforts of the U.S. Attorney's office and the FBI as we work together to combat fraud and abuse in the bankruptcy system."

Haidar filed a Chapter 7 bankruptcy Sept. 23, 2002, claiming total assets of $5,100 and total liabilities of $211,278. Evidence presented at trial showed that in his bankruptcy petition Haidar:

• Stated falsely that he had no checking accounts
• Stated falsely that he did not close any bank accounts within the year before filing
• Stated falsely that he had made no transfers, gifts or payments within the applicable time period for the bankruptcy.

Evidence at trial showed Haidar had a personal checking account at Commerce Bank during the bankruptcy and that he transferred funds to his wife and his brother from his business account. Evidence also showed that from Aug. 1, 2001, to Aug. 30, 2002, Haidar used credit cards to take cash advances and to purchase airline tickets, jewelry and other articles in order to increase his total liability to more than $125,000.

Haidar is set for sentencing May 7. He faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count.

Source: bizjournals: Local Business News