Salt Lake County Man Found Guilty on All Counts for Bankruptcy Crimes

SALT LAKE CITY, Utah - A federal jury convicted Richard Villanueva Mitchell, 53, of Midvale, Utah, today for bankruptcy crimes he committed in 2017. After a three day trial, Mitchell was found guilty of bankruptcy fraud, false bankruptcy declaration, and bribery in bankruptcy.

According to evidence presented at trial, from April 2017 through November 2017, Mitchell schemed to defraud the bankruptcy court, bankruptcy trustee, and his creditors through fraudulent bankruptcy proceedings. As part of the scheme to defraud, Mitchell concealed several hundred appliances such as dishwashers, refrigerators, washers, dryers and ranges, appliances that Mitchell had previously borrowed roughly $500,000 to purchase. Mitchell was self-employed, supplying, installing and repairing appliances for building contractors.

At trial, the jury was presented with evidence that Mitchell filed a voluntary bankruptcy petition in May 2017, seeking to eventually discharge more than $1 million in debt. Mitchell's petition falsely stated he had assets worth less than $50,000. Mitchell filed his mandatory Schedules of Assets and Liabilities and Statement of Financial Affairs, signing them under penalty of perjury, but failed to disclose the appliances, worth over $350,000 by his own later estimation. Mitchell also withheld mention of the appliances when questioned under oath by the trustee about his assets during standard bankruptcy proceedings. While the bankruptcy proceedings were ongoing, Mitchell attempted to conspire with a third party to sell the appliances outside the bankruptcy process, thereby enriching himself and harming his creditors. The trustee eventually learned of the appliances and obtained a court order to sell them at auction to partially satisfy Mr. Mitchell's debts.

Mitchell is scheduled to be sentenced in December 2024 at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.

United States Attorney Trina A. Higgins of the District of Utah made the announcement.

Assistant United States Attorney Brent L. Andrus and Special Assistant U.S. Attorney Peter Kuhn of the U.S. Attorney's Office for the District of Utah are prosecuting the case.

The case is being investigated by the FBI Salt Lake City Field Office