MADISON, Wis. (WFRV) – A 74-year-old Wisconsin man was sentenced on Wednesday to seven years in federal prison for bankruptcy fraud and criminal contempt of court, along with a $500,000 fine.
Bernard Seidling of Hayward was convicted in March of the crimes, according to a release from Timothy O’Shea, the United States Attorney for the Western District of Wisconsin.
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“Seidling was a recurring and shameless financial predator,” U.S. Attorney O’Shea said in the release. “I am grateful to our tireless prosecutors and the many partners who worked to hold him accountable.”
U.S. Attorney O’Shea cited that the following agencies were a part of the overall case and investigation:
- U.S. Trustee’s Office
- Federal Bureau of Investigation
- Wisconsin Department of Justice – Division of Criminal Investigations
- U.S. Postal Inspectors
According to the release, Seidling filed bankruptcy claims in 2022, falsely stating at the time that he had no real estate, retirement accounts, trusts, partnerships or business property and a bank account with $195 in it.
However, in reality, Seidling had about $20 million in assets hidden in fraudulent trusts and partnerships, and despite his claims of not selling real estate in the prior two years, records showed that he sold a Key West, Florida, home for over $3 million in 2021.
Seidling also falsely stated in court that he could not meaningfully participate in the bankruptcy because of his health, arguing that the proceedings should be paused. During the period of his alleged health issues, he managed his businesses, conducted bank activities and played tennis in Key West during the winter.
The conviction of criminal contempt was due to Seidling’s violation of an order in bankruptcy court, which prohibited him from transferring any assets from his 37 businesses and barred him from directing others to do so for him.
Seidling violated the order by reportedly transferring real estate and draining accounts while hiding over $1 million in cash in the crawl space below his home.
According to the release, the seven-year sentence stemmed from his criminal history, including a 1991 conviction for interference with commerce by threats and a 2009 conviction for 50 counts of mail fraud.
Chief U.S. District Judge James D. Peterson cited that Seidling’s skill in using courts to extort people deemed him a danger to reoffend, leading to the seven-year sentence.
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Seidling was also represented by a court-appointed attorney, as he claimed to be unable to afford counsel, which, upon being proven false, he was ordered to reimburse the United States Treasury for defense costs.
No additional details are available.
