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Woman receives year in prison for hiding property in bankruptcy case

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CEDAR RAPIDS -- A woman was sentenced to a year in federal prison for fraudulently concealing property while filing a bankruptcy petition, the U.S. Attorney's office said Monday.

Sandra Risse, 40, of Waterloo, pleaded guilty in June to bankruptcy fraud and making a false statement to the Social Security Administration.

"This case shows the importance of absolute honesty when someone files for bankruptcy or applies for government benefits," U.S. Attorney Charles Larson Sr. said in a prepared statement.

In a plea agreement, Risse admitted that after her husband died in 1996, she inherited several motorcycles and a Corvette and placed the titles of some of the vehicles in other names.

She filed for bankruptcy in February 1997 and didn't list those vehicles, said Assistant U.S. Attorney C.J. Williams, who prosecuted the case.

Also, from 1994 until mid-2000 Risse received supplemental Social Security income on behalf of her disabled son. She claimed she owned only one car and a motorcycle, which she valued at $500.

In reality, the vehicles she concealed were worth about $35,000 and the motorcycle was worth between $4,000 and $20,000, authorities said. That would have disqualified her for the $32,073 in Social Security benefits she received.

Judge Linda R. Reade sentenced Risse Friday to a year in prison and ordered her to pay $32,073 restitution to the Social Security Administration. She will be on supervised release for three years following her prison sentence.

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