DOJ: Florida Woman Convicted of Bankruptcy Fraud Following Federal Bench Trial

• Mott failed to disclose several closed Team Systems International, LLC bank accounts and more than $3 million in transfers to herself and insiders.
• She faces a maximum prison term of five years and a maximum fine of $250,000, with sentencing set for February 4, 2027.

Deborah Evans Mott, controlling member of Team Systems International, LLC, was found guilty by a federal judge of making false statements under penalty of perjury during a bankruptcy proceeding. The conviction followed a four-day bench trial after Mott waived her right to a jury trial.

Mott intentionally failed to disclose several closed company bank accounts and over $3 million in transfers to herself and insiders, omitting this information from bankruptcy filings. She faces up to five years in prison and a $250,000 fine, with sentencing scheduled for February 4, 2027.

• $6 million judgment against Team Systems International, LLC
• $3 million transfers to Mott and insiders
• $250,000 maximum fine Mott faces

• Review bankruptcy filings for Team Systems International, LLC (Case No. 22-10066-CTG) for undisclosed accounts and insider transfers.
• Monitor for patterns of omitted financial information in Statements of Financial Affairs submitted to the U.S. Bankruptcy Court for the District of Delaware.
• Flag any transfers exceeding $3 million to company insiders during bankruptcy proceedings for enhanced scrutiny.

This case highlights the importance of full and accurate disclosure in bankruptcy proceedings, as intentional omissions and false statements can facilitate the concealment of assets and improper insider enrichment. For AML/CFT compliance officers, the conviction underscores the need to scrutinize bankruptcy filings for undisclosed accounts and large transfers to insiders, which may indicate attempts to evade creditor claims or launder funds. The DOJ’s enforcement action demonstrates that such abuses are subject to criminal prosecution, reinforcing the necessity for robust internal controls and due diligence in bankruptcy-related financial disclosures.