08 January 2014
How much trouble can one idiot get in?
According to a court motion filed by one of the trustees assigned to the bankruptcy hearing, The Mortons failed to disclose their interest in a business called Heaven & Earth, LLC, of which Sean David Morton and his wife are reported to hold an interest in.
According to the Trustee:
"...Heaven & Earth, LLC ("Heaven & Earth") is currently a debtor in a chapter 7 bankruptcy case filed in the Central District of California on August 24, 2013..."
The Trustee did a little digging and found out that The Mortons have a collective 50% interest in the business and the address for Heaven & Earth LLC is the same as The Mortons's current address. Oops. Oh, and their names are listed on the business. Double oops.
The motion also states, "On September 6, 2013, during questioning by the United States Trustee at the continued Meeting of Creditors, the Debtors testified that the only businesses that they had interest in were Vajra Productions, LLC, 27 Investments, LLC, Magic Eight Ball Distributing, Inc. and Prophecy Research Institute. After being presented with the papers filed in Heaven & Earth Bankruptcy Case, the Debtors initially refused to testify. However, after speaking to their attorney, the Debtors admitted that they are members of Heaven & Earth."
It appears when you file for bankruptcy, you are required by the court to disclose all of your financials. According to the appointed Trustee in this case The Mortons's "false oaths were knowing and intentional; the Debtors concealed their interest in Heaven & Earth at their Meeting of Creditors and then refused to testify about Heaven & Earth when questioned about Heaven & Earth. Only after speaking with their attorney did the Debtors admit that they are members of Heaven & Earth. Based on the foregoing, Defendants have knowingly and fraudulently made false oaths and accounts during their Meeting of Creditors and in their Schedules and Statements in this bankruptcy case..."
You can read the document filed here. In the end, the Trustee is asking for the court to not allow The Mortons to proceed with their filing due to an apparent act of omission. Unlike Sean David Morton, the government doesn't rely on a crystal ball...
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