SALT LAKE CITY, Utah (KUTV) — A Midvale man, Richard Villanueva Mitchell, 54, has been sentenced to two years of probation after being convicted of bankruptcy fraud, false declaration in bankruptcy, and bribery.
The U.S. Attorney’s Office for the District of Utah had recommended a four-year prison sentence followed by supervised release, but the court opted for probation.
Mitchell filed for bankruptcy in May 2017, attempting to discharge over $600,000 in debt. In his filings, he claimed to have little or no assets.
However, investigators later discovered that Mitchell owned several storage trailers filled with hundreds of new household appliances, including refrigerators, dishwashers, washers, dryers, and ranges. He had reportedly borrowed about $500,000 to purchase the items.
The U.S. Attorney’s Office said Mitchell intended to hide the appliances from the bankruptcy court and sell them for personal gain. He operated as a self-employed contractor, supplying and servicing appliances for construction projects.
Acting U.S. Attorney Felice John Viti criticized Mitchell’s actions, stating he “attempted to selfishly deprive the bankruptcy system established for honest debtors seeking relief in a financial crisis.”
