TOPEKA, Kan. (KSNT) – Topeka real estate developer Kent Lindemuth was indicted Wednesday on federal bankruptcy fraud charges, Acting U.S. Attorney Tom Beall said.
A federal grand jury returned an indictment charging Lindemuth, 64, Topeka, Kan., with 103 counts of bankruptcy fraud.
In November 2012 Lindemuth filed for Chapter 11 bankruptcy protection, reporting to the court he had more than $3.5 million in debt. Under federal law, any property acquired after the date of the bankruptcy filing belongs to the bankruptcy estate, which includes assets that may be used to reimburse creditors and pay off or reduce the debt.
The indictment alleges that from August 2013 to December 2014 Lindemuth purchased more than 100 firearms valued at more than $80,000. The indictment alleges he did not disclose to his creditors or the bankruptcy trustee either the firearms or the money used to purchase the firearms.
The indictment contains a list of firearms, charging Lindemuth with one count of bankruptcy fraud for each firearm. The indictment seeks a money judgment of $80,000 against Lindemuth in addition to a criminal penalty.
If convicted, Lindemuth faces a penalty of up to five years and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.