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April 14, 2024

Keith Freeman Summoned To Court For Examination Of Income Inconsistencies –

By John Kraft & Kirk Allen

On February 14, 2024

Chicago, Ill. (ECWd) –

On February 12, 2024, the Bankruptcy Trustee for Keith Freeman’s bankruptcy filed a Motion for Rule 2004 Examination of the Debtor.

This comes on the heels of our article pointing out certain known and documented financial discrepancies in Freeman’s petition for bankruptcy.

From this Motion for Examination (emphasis ours):

  • The Debtor’s Schedule I reflected the Debtor is employed as Municipality Manager at the Thorton Township and earns $5,833.36 in gross monthly wages and a monthly income as “reimbursement” in the amount of $2,345.00 with a total monthly income listed as $8,178.36 (or $98,140.32 annually).
  • The Debtor’s Statement of Financial Affairs (“SOFA”), question four, reflected the Debtor had employment income of $99,647.00 for 2023 and $45,186.00 for 2022.
  • On January 23, 2024, the U.S. Trustee sent an email to counsel asking for certain financial documents, which have been provided. The information on the documents received is inconsistent with the information on the Debtor’s schedules.
  • The U.S. Trustee seeks further information and documents to verify the veracity, truthfulness, and completeness of the Debtor’s petition, schedules, statement of financial affairs, means test, amended schedules (if any) and testimony given at the meeting of creditors in order to determine whether there may be a basis to object to the Debtor’s discharge under Section 727 of the Bankruptcy Code or file a motion to dismiss Debtor’s case pursuant to Section 707. To do so, the U.S. Trustee needs to review documents and elicit testimony from the Debtor under Federal Rule of Bankruptcy Procedure 2004(c), which may include the production of documents and
    attendance at an examination.

This examination is scheduled for February 20, 2024, at 9:00 a.m. in courtroom 619 of the Everett McKinley Dirksen United States Courthouse, Chicago, Illinois.

Motion Rule 2004 Examination of Freeman Banckruptcy MOTION_Redacted

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1 Comment
  • Jack Tarleton
    Posted at 12:10h, 14 February

    To quote a famous cartoon character: “Ruh-Roh Raggy!” He’d better have a good explanation. They don’t schedule a 2004 Examination unless they have a serious problem with somebody. If they don’t get a good explanation, the next step is a referral to the U.S. Attorney, and that never ends well.

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