Anaheim Man Is Indicted in Bankruptcy Fraud Case

An Anaheim man was among four Southern Californians who were indicted Tuesday for allegedly using false identities or documents to file for bankruptcy--an increasingly common offense, according to prosecutors and bankruptcy trustees.

Miguel Diaz, 39, of Anaheim was accused of making a false statement on a bankruptcy filing and using a false Social Security number. If convicted, he could be sentenced to 10 years in prison and fined $500,000.

Also indicted were Linda Clark Lane, 45, of Gardena; Michael Lowe, 45, of Oceanside; and Gabriel Videla, 57, of Thousand Oaks, according to the U.S. attorney’s office. Lowe and Videla were accused of filing false documents, while Lane was accused of using a false Social Security number. A date for their arraignment has not been set.

Maureen Tighe, a U.S. Bankruptcy Court trustee, said the indictments were part of a crackdown on fraud in the Central District of California.

Those who are caught using false identities in Bankruptcy Court often have been using them for years, Tighe said. It’s only when they have ruined the credit rating connected to the stolen Social Security number and try to file for bankruptcy that they are caught, she said.

Diaz was an illegal immigrant who entered the country in 1989 and allegedly began using a Social Security number that he made up, said Assistant U.S. Atty. John Webb. The number, however, belonged to an Illinois woman.