Colts Neck NJ gentleman declared bankruptcy but experienced $2.9M in magic formula account
NEWARK – A Colts Neck male has been charged with fraudulently submitting for bankruptcy, after federal investigators found he experienced a concealed bank account with a harmony of $2.9 million, Acting U.S. Legal professional Rachael Honig claimed.
Elia Zois, 56, was charged with a person depend of concealment in individual bankruptcy soon after he claimed he had hundreds of hundreds of thousands of bucks in liabilities and limited property, Honig reported in a ready assertion.
Zois was just one of five companions in a health and fitness treatment enterprise that preserved about 50 senior-living amenities all over New Jersey, Michigan, and Wisconsin. The organization was based mostly listed here in New Jersey, in accordance to the U.S. Attorney’s Office environment.
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On Feb. 6, 2019, Zois and his husband or wife filed for Chapter 7 personal bankruptcy protection. They claimed that amongst 2014 and 2018, Zois had $9,000 in property and $201 million in liabilities, due to the fact of his partnership in the enterprise, according to court docket data.
However, a forensic accounting report concluded that for the duration of that identical time interval —Zois received $2.9 million in deposits into the bank account of a different business enterprise of which he was the sole proprietor. He also been given about $200,000 in undeclared earnings that he built right after he filed for personal bankruptcy, in accordance to the U.S. Attorney’s Business office.
The concealed account was supposed to conceal a portion of his cash flow to circumvent current IRS liens on his acknowledged belongings, the statement mentioned.
If convicted, Zois faces up to five several years in federal prison and a $250,000 fantastic.
Investigators from the U.S. Division of Labor underneath the supervision of Adriana Vamvakas, Northeastern Regional Director of the Office of Labor Administration Specifications and distinctive brokers of the Labor Department’s Business of Inspector Standard, New York Region, under the route of Acting Particular Agent in Cost Nikitas Splagounias, are all accountable for the investigation.
Particular brokers of the FBI’s Milwaukee area office assisted in the legal probe.
The authorities is represented by Senior Litigation Counsel V. Grady O’Malley and Exclusive Assistant U.S. Legal professional Kendall Randolph of the office’s Organized Crime/Gangs Device.
Timothy M. Donohue, a West Orange-centered defense attorney, represents Zois.
Erik Larsen: 732-682-9359 or elarsen@gannettnj.com