Irving resident admits to filing ten fraudulent bankruptcy petitions to avoid foreclosure
Irving, Texas – An Irving man has admitted to filing fraudulent bankruptcy petitions over a 12-year span in an effort to avoid foreclosure on his home. Michael Shaub, 62, pleaded guilty to one count of bankruptcy fraud on Tuesday, as announced by U.S. Attorney Leigha Simonton for the Northern District of Texas.
A Pattern of Abuse
According to court records, Mr. Shaub and his spouse purchased a home in Irving, taking out a mortgage loan secured by their ownership interest in the property. Beginning in January 2012, Mr. Shaub initiated his fraudulent activity by filing his first Chapter 13 voluntary bankruptcy petition. That case was dismissed after he failed to meet payment obligations under the Debtor’s Plan.
Over the following seven years, Mr. Shaub filed five additional bankruptcy petitions. In May 2019, the court dismissed his sixth petition with prejudice, prohibiting him from filing any further bankruptcy cases for two years.
Fraudulent Filing in His Wife’s Name
Despite this court-ordered ban, Mr. Shaub filed another bankruptcy petition in October 2019—this time under his wife’s name, without her knowledge or consent. He later admitted to using this petition as a way to circumvent the court’s restriction. The case was dismissed shortly afterward.
Continued Violations Despite Court Orders
By December 2019, Mr. Shaub filed an eighth petition, once again violating the prohibition on further filings. In his documentation, he falsely underreported his history of bankruptcy filings. This led to yet another dismissal in February 2020, with the court barring him from filing any additional petitions for five years, until February 2025.
However, Mr. Shaub did not relent. In 2022, he filed a ninth bankruptcy case, prompting the court to issue a more severe penalty. That filing was dismissed with prejudice, and the court extended the filing ban to ten years, through June 2032.
Astonishingly, Mr. Shaub ignored the court’s orders yet again in August 2023, filing his tenth bankruptcy petition. The court dismissed the case the same day.
Facing Federal Consequences
Following his guilty plea, Mr. Shaub now faces up to five years in federal prison for bankruptcy fraud. His consistent abuse of the bankruptcy system has drawn the attention of federal authorities, and the case highlights the severe consequences of defrauding the judicial process.
The Federal Bureau of Investigation’s Dallas Field Office led the investigation into Mr. Shaub’s activities, and Assistant U.S. Attorney Marty Basu is prosecuting the case.
