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Barron County woman sentenced for bankruptcy fraud

Superior Telegram


A Barron County woman was sentenced Thursday for hiding assets during a bankruptcy, according to John W. Vaudreuil, United States Attorney for the Western District of Wisconsin.

U.S. District Judge William M. Conley sentenced Cynthia Barlow, 55, to two years of probation and fined her $2,400.

On April 2, Barlow pleaded guilty to concealing assets during bankruptcy. She concealed from the bankruptcy trustee $18,977 in cash that she had withdrawn from her bank account and hid at her residence shortly before filing bankruptcy.

Barlow also made large payments shortly before filing bankruptcy to favored creditors, including a payment of $12,000 to two family members. She further lied under oath about her assets during the meeting of creditors.

The bankruptcy trustee discovered Barlow’s lies only after making a special request for bank records, which showed that Barlow had made the large withdrawals.

U.S. Attorney Vaudreuil praised the work of the bankruptcy trustee who discovered Barlow’s fraud. He also reiterated his office’s commitment to prosecute those debtors who abuse the bankruptcy process by choosing to hide their assets.

The charges against Barlow were the result of an investigation conducted by the U.S. Trustee’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Meredith Duchemin prosecuted the case.