Midvale man convicted of bankruptcy crimes committed in 2017

SALT LAKE CITY (ABC4) – The U.S. Attorney’s Office has convicted a Midvale man for bankruptcy crimes committed in 2017 as he attempted to “defraud the bankruptcy court.”

According to the press release from the Utah district office, Richard Villanueva Mitchell, 53, was found guilty of bankruptcy fraud, false bankruptcy declaration, and bribery in bankruptcy.

“From April 2017 through November 2017, Mitchell schemed to defraud the bankruptcy court, bankruptcy trustee, and his creditors through fraudulent bankruptcy proceedings,” the office stated.

Defrauding is the act of illegally obtaining money from someone or some entity by deception.

As part of the scheme to defraud, Mitchell was found to have concealed several hundred appliances including dishwashers, refrigerators, washers, and dryers.

These were appliances that Mitchell had previously borrowed roughly $500,000 to purchase, according to the Attorney’s Office. They say Mitchell was “self-employed,” as he was “supplying, installing and repairing appliances for building contractors.”

Attorneys say the jury was presented with proof that Mitchell filed a voluntary bankruptcy petition in May 2017, seeking to eventually discharge more than $1 million in debt.

The office says that Mitchell’s petition for bankruptcy falsely stated he had assets worth less than $50,000. Mitchell filed his mandatory Schedules of Assets and Liabilities and Statement of Financial Affairs, signing them under penalty of perjury, but failed to disclose the appliances.

By Mitchell’s estimation, the appliances worth over $350,000.

Mitchell also withheld mention of the appliances when questioned under oath by the trustee about his assets during standard bankruptcy proceedings.

While the bankruptcy proceedings were ongoing, Mitchell is said to have conspired with a third party to sell the appliances outside the bankruptcy process, enriching himself and harming his creditors.

The trustee learned of the appliances and obtained a court order to sell them at auction to partially satisfy Mitchell’s debts.

Mitchell is scheduled to be sentenced later this year.

For the latest news, weather, sports, and streaming video, head to ABC4 Utah.