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A federal grand jury returned a 20-count indictment on
Tuesday against Miller, 50, on charges of bankruptcy fraud,
concealment of bankruptcy assets, and false bankruptcy
declarations.
She will be arraigned on Nov. 5 in U.S. District Court in
Pittsburgh, said a spokeswoman for U.S. Attorney David Hickton.
If convicted, Miller faces up to five years in prison and a
$250,000 fine for each count, Hickton said in a press release.
Miller had filed a petition to reorganize her dance studio, Abby
Lee Dance Company in the western Pennsylvania municipality of
Penn Hills, in December 2010. She is accused of scheming to
defraud the bankruptcy court by concealing income she earned
between 2012 and 2013, by creating bank accounts to hide it.
"Miller knowingly concealed ... a substantial amount of business
income which she earned from her appearances as a featured
performer on the reality television program 'Dance Moms,' and
related spin-off TV programs, as well as income she earned from
Masterclass dance events and online merchandise sales from Abby
Lee Dance Company.com," the indictment said.
"Dance Moms" on the Lifetime television network, currently in
its fifth season, exposes the lives of competitive young
dancers, including the tensions between their parents and
Miller. She is currently filming a sixth season, said her
lawyer, Robert Ridge of Pittsburgh.
Some of the fraudulent activity came to light after a bankruptcy
judge, channel surfing one night, spotted some of the related
shows and raised questions about Miller's claim to be
cash-strapped, the indictment said.
"I realized there is a lot of money coming into this plan, this
case and it hasn't been disclosed," the indictment quoted the
judge as saying at a court hearing in 2013.
Investigators also found emails from Miller to her accountant
and a joint venture partner in 2013 with the subject line "LETS
MAKE MONEY AND KEEP ME OUT OF JAIL," admonishing them to "not
raise any red flags" and "DON'T PUT CASH IN THE BANK!!!,"
according to the indictment.
Miller's lawyer said in a statement his client entered
bankruptcy to save her business and "has paid all of her
creditors 100 cents on the dollar. There is no loss to any of
her creditors."
(Reporting by Barbara Goldberg in New York; Editing by Mohammad
Zargham and Frances Kerry)
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