KC payday loan tycoon jailed for bankruptcy fraud


A Kansas City payday loan holder was sentenced to one year plus one day in jail in federal court Wednesday after pleading guilty to filing a false bankruptcy claim in attempting to owe US ​​7.5 million – Mining dollars.

Del Hodges Kimball, 54, pleaded guilty in January on a single bankruptcy fraud charge. In addition to his sentence, Kimball was sentenced to more than $ 900,000 in reparation US Attorney’s Office for the Western District of Missouri said.

Authorities alleged he lied about his financial condition for two years while holding on to assets he secretly owned to avoid repaying his lenders. In his plea, Kimball admitted that his scheme was hatched to defraud the bankruptcy court by concealing assets and bank accounts and providing false information, federal prosecutors said.

Acting US Attorney Teresa Moore said the bankruptcy system that Kimball admitted to being exploited relies on the honesty, openness and accuracy of those in debt seeking a fresh start.

“This defendant mocked the system in hopes that he could pay off over $ 7.5 million in debt while keeping a luxurious lifestyle to himself,” said Moore said in a statement.

The charges related to personal bankruptcy proceedings pending Kimball in 2015. Kimball and the payday loan company LTS Management, which he co-owned, were forced into bankruptcy by creditors who claimed they owed millions of dollars from investing in payday loans.

In 2017, a bankruptcy trustee accused Kimball of hiding assets, bank accounts, and earnings from his bankruptcy filings. The star had previously reported. Bankruptcy debtors must disclose all aspects of their financial situation.

Those failures, according to the trustee, included selling a warehouse for nearly $ 1 million, selling three cars for more than $ 120,000, eight wristwatches worth more than $ 29,000, and a painting of the Rolling Stones Guitarist Ronnie Wood.

Meanwhile, Kimball claimed he lost millions of dollars in 2013 and 2014 when he actually had gross income of nearly $ 160,000 in 2013 and more than $ 213,000 in 2014, federal prosecutors said. He also admitted to pouring hundreds of thousands of dollars in profits into his wife’s personal bank account to hide his assets from creditors and federal agencies.

Steve Vockrodt from the star contributed to this report.

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