“Dance Moms” Star Abby Lee Miller Charged With Bankruptcy Fraud
“Dance Moms” star Abby Lee Miller was charged with bankruptcy fraud for hiding her income and concealing assets, federal prosecutors in Pittsburgh announced on Wednesday.
Miller filed for bankruptcy in December 2010 and remained in insolvency for three years, during which time she was required to report all of her income to the court. Wages earned during that time, which stemmed from her Lifetime reality show and spinoff projects, went into a special bank account, as per a court order.
However, Miller set up a hidden bank account to divert more than $755,000 in income she had made from her TV shows, merchandise and apparel sales, and dance lessons at her studio. As a result, a federal grand jury indicted the reality star on 20 counts of fraud, and she faces up to five years in prison for each charge.
Bankruptcy Judge Thomas Agresti became suspicious after channel surfing one night and coming across a commercial that advertised her appearances on “Ultimate Dance Competition” and “American Idol.” Agresti then ordered a hearing for Miller to disclose her full income, at which point it was discovered that she was hiding large portions of her earnings.
Gossip Cop has reached out to Miller’s defense attorneys for comment, but has yet to hear back.