Abby Lee Miller, 50, of the Lifetime hit show Dance Moms has been indicted by a federal grand jury on charges of bankruptcy fraud, said U.S. Attorney David Hickton of the Western District of Pennsylvania.

“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt resulting from any number of legitimate reasons, but allegations of fraud and abuse threaten the integrity of the bankruptcy process and the public’s trust in it. We take our responsibility to pursue allegations of bankruptcy fraud seriously,” said Special Agent in Charge Scott S. Smith of the Federal Bureau of Investigation’s Pittsburgh Division.

The 20-count indictment includes charges of concealment of bankruptcy assets and false bankruptcy declarations.   Miller faces up to 5 years in prison and up to $5 million in fines, if convicted.  According to the indictment, Miller filed a petition to reorganize her dance studio in 2010.  The reality star allegedly concealed her income between 2012 and 2013 from her show, as well as her spinoff shows, dance sessions, and merchandise sales.  The indictment alleges that Miller created secret bank accounts to hide more than $750,000 and then made multiple false declarations in monthly operating reports.  It is alleged that she lied in order to receive more favorable terms for restructuring of her debt.

“Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court,” said U.S. Attorney David J. Hickton in a statement.

“The investigation of Abigale Lee Miller demonstrates our commitment to identify and prosecute those who commit bankruptcy fraud,” stated Acting Inspector in Charge, David McGinnis, of the U.S. Postal Inspection Service – Pittsburgh Division.

READ THE FULL DOJ STATEMENT HERE.

READ THE INDICTMENT HERE.

Sources:  FOXNews  |  E!Online  |  ABCNews

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