Kan. Grand Jury Indicts Couple on Claims Scam

United States Attorney Eric Melgren announced that a Kansas couple were indicted April 6, by a federal grand jury in Wichita, Kan.

Galen R. Beach, 49, Newton, Kan., and Vickie L. Beach, 49, Newton, Kan., who are charged with bankruptcy fraud. Both are charged with two counts of mail fraud, one count of bankruptcy fraud, and one count of misusing a Social Security number.

According to the indictment, Galen and Vickie Beach, who are husband and wife, filed Chapter 7 bankruptcy Sept. 17, 2001, in U.S. Bankruptcy Court in Wichita. The indictment says that on July 10, 2003, they filed a statement with the Kansas Secretary of State’s office falsely claiming they had a summary judgment in the amount of $500,000 against United States Trustee J. Michael E. Morris.

In March 2004 they filed a false claim against the Liberty Mutual Insurance Company surety bond maintained by the United States Trustee for this region. They based the claim on a fraudulently generated document stating that they had received a $500,720 arbitration award and another in the amount of $1,550,536.67 from the so-called “Western Arbitration Council.”

The indictment also says that on Sept. 17, 2001, they filled out a bankruptcy petition using false Social Security numbers. In addition, on Sept. 11, 2001, Galen and Vickie Beach filed a bankruptcy petition containing false Social Security numbers.

If convicted, they face a maximum penalty of 20 years in federal prison without parole and a $250,000 fine on each count of mail fraud; up to five years in federal prison without parole and a $250,000 fine on the bankruptcy fraud count; and up to 5 years without parole and a $250,000 fine on the counts of misusing a Social Security number.