La Jolla man sent to prison for bank fraud

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jail-cellSAN DIEGO – A La Jolla man was handed a six-month federal prison term for bankruptcy fraud, the U.S. Attorney’s Office announced Monday.

Mark Hagen, 54, pleaded guilty Sept. 12 to knowingly and fraudulently defrauding the U.S. Bankruptcy Court and his creditors by concealing and lying about more than $45,000 in federal tax refunds.

In April 2008, Hagen filed a Chapter 11 petition that was then converted to a Chapter 7 petition.

Despite instructions to turn over his tax refunds and questions about their whereabouts, Hagen repeatedly concealed more than $45,000 worth of the reimbursements, falsely stating that he had not received any such funds during bankruptcy proceedings in 2009 and 2010, according to prosecutors.

In actuality, the federal government had issued tax refunds to Hagen in February 2009, and he had endorsed and arranged for them to be deposited into a bank account that he controlled the following year.

Hagen had faced a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine, according to the U.S. Attorney’s Office in San Diego.

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