U.S. Attorney Deborah R. Gilg announced an agreement Monday with Richard and Janna Pierce of Miller to drop bankruptcy fraud charges. The Pierces agreed to pay $20,000 to the Chapter 12 Trustee for distribution to their creditors. In exchange, the federal charge of bankruptcy fraud was dropped.
Gilg said there was a legitimate dispute over whether bankruptcy laws required the Pierces to disclose certain contractual arrangements when they filed for bankruptcy.
She said some experts were willing to testify that the Pierces were required to disclose such arrangements, but other experts would have testified they were not required to do so.
Both sides agreed to the additional payment, so the criminal charges were dropped, Gilg said.