00-4191 U.S. v. Lowell

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“Bankruptcy panel trustees are, of course, compensated for their services. In addition to a $60 fee paid to the trustee by the government for every bankruptcy case she closes, a panel trustee’s compensation in a given case is based upon a percentage of the value of the assets liquidated and disbursed to the estate’s creditors. It is obvious, therefore, that when Lowell fraudulently misstated the extent of CDM’s assets in the admitted effort to conceal them from the trustee, he ‘directly and proximately harmed’ the trustee herself, as the fraud prevented her from easily identifying, seizing, liquidating, and dispersing the concealed assets. This, of course, reduced her compensation and increased her costs.”

“Consequently, not only creditors but the chapter 7 trustee as well may be victimized directly by a bankruptcy fraud to the extent it deprives the estate of assets otherwise subject to administration.”

“Finally, upon reviewing the record, we determine that Judge Murphy did not abuse his discretion when, on remand, he settled on $25,906.25 as the amount of restitution due to the trustee. The evidence disclosed that the trustee was required to spend approximately 207 unnecessary hours in this case as a direct result of Lowell’s fraudulent statements on the bankruptcy petition and schedules. Also, the fact that the trustee receives $125 per hour for out-of-court work and $150 per hour for in-court work in her private practice is uncontradicted. Thus, the sum settled on as restitution, $25,906.25 (207.252 hours X $125 per hour), must stand.”

Affirmed.