Bankruptcy Fraud: Former Attorney From Westchester Admits Lying To Keep Assets, Officials Say

Bronxville resident John Roesser, age 52, pleaded guilty on Tuesday, Sept. 12 to charges related to making falsified statements and submitting fake records to bankruptcy court, the US Attorney's Office for the Southern District of New York announced. 

According to federal officials, Roesser had been a partner at three multinational law firms between March 2013 and January 2018. During this time he earned substantial income but also incurred a large amount of income tax liability. He later resigned from the New York bar in June 2020 after admitting to misappropriating client funds. 

After resigning, by 2022, Roesser eventually owned the IRS and others over $3 million while owning both a house that he estimated to be worth millions of dollars and an Aston Martin Rapide luxury sports car.

On Feb. 3, 2022, Roesser filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of New York, which meant that he could remain in possession of his assets but would have to propose a plan of reorganization which his creditors could then vote on.

Shortly after, the IRS filed a proof of claim in the bankruptcy, claiming that they were owed over $3.8 million for income taxes assessed between 2014 and 2019 in addition to penalties and interest. 

To come up with a reorganization plan, Roesser testified under oath in March 2022 and declared that a limited liability company in which he held 45 percent interest was expecting to receive around $9.6 million from a real estate commission. He again testified this in April, saying that he was expecting to receive millions of dollars. 

In late June 2022, a legal assistant for Roesser's lawyer submitted a document to an assistant US Attorney that was supposed to show an online banking screenshot relating to a bank account held by the LLC. This record showed a balance of over $9.6 million in the LLC account. However, this record was fake, as the account never had more than $200 in it, officials said.

In early July 2022, Roesser's lawyer again sent the assistant US Attorney a document supposedly showing over $9.6 million in his debtor-in-possession account for the Bankruptcy. This record was also fake, as the account never had a positive balance, according to the US Attorney's Office. 

A month late, in early August 2022, Roesser's lawyer and the US Attorney then electronically signed a stipulation stating that the secured claims of the IRS would be resolved if Roesser paid $3,923,981.26 to the IRS within seven days. 

Roesser's lawyer then filed a monthly operating report listing a balance of over $9.5 million in the debtor-in-possession account. This was also false, officials said. 

When a legal assistant for Roesser's lawyer tried sending the assistant US Attorney a check worth $3,923,981.26 from the account after the stipulation was ordered by a judge, it was unsuccessful, as the account still did not have a positive balance. 

The bankruptcy was later dismissed on Friday, March 3, 2023, federal officials said. Creditors can now take action to seize Roesser's assets without the protection of bankruptcy. 

Roesser now faces up to five years in prison after pleading guilty to one count of false oaths and claims in bankruptcy. 

US Attorney Damian Williams criticized Roesser for knowingly trying to take advantage of the bankruptcy system. 

"The United States bankruptcy system does immense public good and provides a backstop for people trying to lawfully navigate their way out of debt," Williams said.

He continued, "The defendant — who used to be a lawyer and knew exactly what he was doing — manipulated and corrupted a system that helps so many. He lied to the U.S. Bankruptcy Court for the Southern District of New York so that he could use its protections to keep his assets and to avoid paying his bills." 

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