Fraudulent Bankruptcies

The Jan. 9 article, “A Plague Visits the Landlords,” infers that the simplistic solution to the problem of bankruptcy petition mills (operations that file false bankruptcy petitions to stop evictions and foreclosures) is for law enforcement officials to prosecute more mills. The only permanent and effective way to stop these fraudulent bankruptcy schemes, however, is through legislative change. The U.S. attorney’s office has participated in the Ninth Circuit’s Unlawful Detainer Committee and has assisted in studying and proposing legislative changes that would stop the petition mills before crimes are committed. With certain legislative revisions, we may be able to keep some of the fraudulent filings out of the system altogether. Contrary to your article, complaints about these schemes have not been unheeded by our office. Since 1988, the U.S. attorney has routinely brought charges against individuals who filed fraudulent bankruptcies to stop evictions and foreclosures.

The article’s criticism of this office for its refusal to discuss pending investigations with the reporter is unwarranted. Our office is prohibited by law from discussing matters that are not public record.

TERREE A. BOWERS

U.S. Attorney, Los Angeles