Ossineke man, parents convicted in bankruptcy fraud scheme
An Ossineke man and his parents were convicted Thursday by a federal jury in Bay City on bankruptcy fraud and other related charges, United States Attorney Matthew Schneider announced Friday. Schneider was joined in the announcement by USDA-Office of Inspector General Special Agent-in-Charge Anthony Mohatt
Scott McQuarrie, 41, David McQuarrie, 68 and Yvonne McQuarrie, 67, were convicted after an eight-day trial before U.S. District Judge Thomas Ludington. The jury deliberated approximately three hours before returning the guilty verdicts.
Scott McQuarrie was convicted of making false statements on his security agreement with Farm Service Agency, a component of the U.S. Department of Agriculture. He also was convicted of converting the collateral he had pledged to the FSA, bankruptcy fraud by making false statements on his bankruptcy petition and at his 341 hearings, concealing assets from the bankruptcy trustee, conspiracy to conceal assets from the bankruptcy trustee, and engaging in wire and mail fraud to obtain insurance money to which he was not entitled.
David and Yvonne McQuarrie were convicted for their role in the fraud scheme. David McQuarrie was convicted of concealing Scott McQuarrie’s assets from the bankruptcy trustee, conspiracy to conceal assets from the bankruptcy trustee, and engaging in wire fraud to obtain insurance money.
Yvonne McQuarrie was convicted of concealing Scott McQuarrie’s assets from the bankruptcy trustee, conspiracy to conceal assets from the bankruptcy trustee, and engaging in mail fraud to obtain insurance money
“The USDA-Farm Service Agency provides a safety net to American farmers, but is ultimately reliant on the integrity and honesty of its participants,” Mohatt said. “Scott McQuarrie made a concerted and deliberate effort to commit fraud against the farm programs designed to provide him support. Yvonne and David McQuarrie furthered Scott’s scheme by conspiring to conceal farm and other assets from the bankruptcy process. These convictions send a clear and convincing message to others who may seek to defraud USDA programs. Our agency will be forever grateful to the attorneys and support staff at the United States Attorney’s Office who ensure that fraud perpetrated against USDA programs are addressed in the court of law.”
An additional conversion count against Scott McQuarrie was severed from the other counts during the trial. That count is now scheduled for trial on April 17.
Ludington revoked Scott McQuarrie’s bond after the jury verdicts were returned. He is scheduled to be sentenced on June 28. His parents are scheduled to be sentenced July 12.