Bethesda Woman Indicted On Bankruptcy Fraud Charges

A Bethesda woman who filed for Chapter 7 bankruptcy attempted to conceal assets including stock worth more than $10,000, two vehicles, and a Cartier bracelet with 75 individually set diamonds she sold for $85,000, according to a federal indictment announced Monday.

Diana J. Stout, 55, was indicted by a federal grand jury on charges of bankruptcy fraud, false statement in bankruptcy, fraudulent conveyance of property, and concealment of assets in connection with the bankruptcy filing, according to a news release from the U.S. Attorney’s Office for the District of Maryland.

In addition to failing to disclose the bracelet, the 797 shares of Eagle Bancorp, and the 2005 Chevrolet Avalanche SUV and 1993 Toyota Supra, the 16-count indictment also alleged that Stout failed to disclose that she transferred a property she owned in North Carolina to her daughter for $1. Stout bought the property in 2008 with her own funds and the funds of her former boyfriend, who filed a civil complaint alleging Stout misappropriated more than $1 million of his money, including for the purchase of the property, according to the indictment.

Stout’s bankruptcy filing prevented her former boyfriend from proceeding with the civil case, according to the release.

The indictment also alleges Stout converted insurance checks intended for water damage repairs on a home she owned in Hagerstown to her own use, and filed forms purporting to be from creditors withdrawing claims for funds with fraudulent signatures.

Stout faces a maximum of five years in prison on each of the 16 counts, according to the release. A court date has yet to be set.

Stout’s attorney, Assistant Federal Public Defender Ebise Bayisa, did not immediately respond to a call for comment.