LaTisha Collier investigated for bankruptcy fraud? LOVE DURING LOCKUP

Love During Lockup LaTisha Collier investigated for bankruptcy fraud?

LaTisha Collier and Keith Collier may be the first Love During Lockup couple to switch places! As Keith Collier’s release date draws closer, a US Bankruptcy Court judge has referred LaTisha to the Us Attorney’s office in Iowa for an investigation into possible bankruptcy fraud!

The referral was part of the judge’s February 8 ruling to dismiss Boss Tax and Accounting Services’ most recent bankruptcy filing.

As Starcasm previously reported, the trustee in the bankruptcy case recommended dismissal for multiple reasons, including allegations that the bankruptcy was filed in bad faith as an attempt to stall eviction proceedings against Boss Tax and Accounting Services for their Davenport, Iowa location.

The trustee cited multiple Starcasm articles and an interview LaTisha did with Kiki and Kibbitz last year in which she admitted to filing bankruptcy personally on multiple occasions to stall collections.

Two other reasons the trustee recommended dismissal included Boss T&A not having an attorney, which is a requirement for corporate bankruptcy filings. In addition, the filing fee was not paid. In fact, LaTisha filed a petition in hopes of being able to make payments at a later date. (The bankruptcy layaway plan is only available for individuals and not corporations.)

The “two other” reasons for dismissal should have been familiar to LaTisha because they were the reasons Boss T&A’s previous bankruptcy filing in September of 2022 (also during an eviction process) was dismissed.

Boss Tax and Accounting Services bankruptcy dismissed

In his order dismissing Boss T&A’s most recent bankruptcy, the judge cited all seven of LaTisha’s personal bankruptcy filings.

Just as Starcasm reported, the only bankruptcy filing of LaTisha’s that went through was the first one she filed jointly with her husband in 2009. It was also the only filing in which LaTisha had an attorney.

Despite the first bankruptcy filing going through, LaTisha and her husband later made it moot. “Although debtors initially received a general discharge, that discharge was revoked as a result of their failure to turn over their nonexempt refunds to the chapter trustee,” the judge points out.

The judge also references the Starcasm articles and LaTisha’s comments about filing bankruptcies to stall creditors from the Kiki and Kibbitz interview:

If accurate and verifiable, that information should be troubling to anyone concerned about maintaining the integrity of the bankruptcy system that the United States Congress has established. It is troubling to this Court — especially when considered in conjunction with Latisha Collier’s long history in this forum in general and with her behind-the-scenes activity in this case in particular.

On January 17, LaTisha filed a response to the trustee’s recommendation to dismiss the Boss T&A bankruptcy. Amazingly, her response was comprised of a single typed paragraph that she wrote and faxed in:

Opposition To Motion To Dismiss and Request For More Time To File Schedules

I am opposing this motion to dismiss the bankruptcy case. There is no bankruptcy fraud. Boss Tax has every intention on completing a successful bankruptcy case and is currently working on the correct schedules to be filed. Boss Tax has incurred a large debt over the past year and would like to reorganize the business and finances. We are asking the courts to grant more time to get all documents filed and dismiss the motion for dismiss.

LaTisha Collier

More than three weeks passed before the judge issued his ruling, and Boss T&A hadn’t followed through on any of what LaTisha promised. That alone was easily enough to merit a dismissal — especially considering the fact that Boss T&A had their previous filing dismissed for the same reasons.

From the judge’s order:

In support of her contention this case should be dismissed, the UST alleges specific facts in paragraphs 1 through 7 of her motion. LaTisha Collier has not disputed any of those facts in her objection. Those facts are supported by a review of the two dockets…

…Despite Judge Shodeen’s straightforward order in the prior case and the UST’s [trustee’s] repetition of the legal premises in her motion, Debtor has failed to date to obtain counsel to represent it in this case and to pay the filing fee. There is no indication in the objection filed by LaTisha Collier that Debtor will do so. Additionally, as mentioned in paragraph 6 of the UST’s motion, Debtor has failed to date to file schedules and statements and to comply with the small business requirements found in 11 U.S.C. § 1116. In her objection, LaTisha Collier only alleges Debtor is preparing schedules and requests more time to do so.

Whereas controlling case law has not changed in the interim meaning a corporation, including a limited liability company, continues to be deemed an entity distinct from its member(s) and must be represented by licensed counsel, and whereas no licensed counsel has filed an appearance on behalf of the Debtor to date, this case must be dismissed. No further hearing or notice is warranted given the history of the prior case and the status of this case.

The judge references LaTisha’s objection to the dismissal again, as well as her interview and the Starcasm articles, in the context of potential bank fraud:

Notably, in her objection as it relates to all of the foregoing allegations of bad faith, Latisha Collier merely states “[t]here is no bankruptcy fraud.” Curiously, that statement seemingly is at odds with the third party information referenced in the preceding paragraph.

Boss Tax allowed to file bankruptcy again

The trustee in the bankruptcy case requested that Boss Tax and Accounting Services be barred from filing for bankruptcy for a certain amount of time due to the bad faith allegations. In a rare positive for LaTisha and her business, the judge disagreed.

Based on the alleged bad faith allegations, the UST contends this Court should dismiss the pending case with prejudice. This Court declines to do so for the simple reason the vast majority of the egregious allegations rest on the actions of Latisha Collier rather than on actions attributable to the Debtor. Given the underpinning for dismissal of this case is Debtor being an entity distinct from its owner, finding Debtor should be found to have acted in bad faith is analytically awkward.

Therefore, the Court hereby Orders that: This case is dismissed. The dismissal is without prejudice to the extent Boss Tax and Accounting Services, LLC may seek future bankruptcy relief but only if a licensed attorney files a petition on its behalf and continues to represent it throughout the case. Should Latisha Collier submit another petition on behalf of the Debtor, that petition shall be summarily dismissed without notice or hearing.

LaTisha Collier to be investigated for bankruptcy fraud?

The judge concluded his order to dismiss the bankruptcy with a paragraph that DOES NOT bode well for LaTisha! The judge reveals that he has referred all of LaTisha’s actions in regards to her bankruptcies to the US Attorney’s office in order to investigate potential bankruptcy fraud:

This order shall constitute this Court’s 18 U.S.C. § 3057(a) referral to the United States Attorney for the Southern District of Iowa for investigation into possible violations of 18 U.S.C. §§ 152, 156 and 157 by Latisha Collier. The Clerk shall provide the United States Attorney a copy of this order, copies of the public docket for Case Number 22-00984-als11 and for this case, and copies of all the documents referenced in this order.

The judge mentions three different bankruptcy code statues that LaTisha may have violated, the most serious of which would result in LaTisha being fined and “imprisoned not more than 5 years, or both,” if found guilty.

Here’s an excerpt about the most serious statute from the US Department of Justice:

Any defendant who undertakes a fraud scheme against anyone and then carries out or conceals the scheme by filing for bankruptcy or by filing any documents in the bankruptcy, violates this statute. This section is also applicable to the defendant who tries to defraud someone by falsely asserting that a case is in bankruptcy in order to forestall the victim’s actions.

In her Kiki and Kibbitz interview, LaTisha stated she had filed bankruptcy in the past to forestall creditors’ actions. Plus, both of Boss Tax and Accounting’s recent bankruptcy filings were during eviction proceedings. The filing fees were never paid, both filings had no attorney of record, and both were missing most all of the required financial documentation.

It also can’t help LaTisha that she has multiple felony convictions, including theft and fraudulent practice. We will continue to monitor the District Court and we’ll be sure to update if charges are filed against LaTisha. Stay tuned!