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How failing to report currency tripped a “Dance Moms” icon

As the star of “Dance Moms,” she is known for demanding perfection of her students. Some even call her tactics emotionally abusive when she brings students to tears. But the tables have turned.

The reality television star is scheduled to plead guilty to bankruptcy fraud in a Pittsburgh courtroom next week. The Orange County Register reports that the accusations stem from her failure to report Australian currency she carried with her into the country.

The charges were brought in Pittsburgh, because her dance studio was located in a suburb of the city before she moved to Los Angeles.

Not just FBAR – Foreign currency reporting on reentry

Last week, we reminded those with foreign bank accounts of about Form 114, Report of Foreign Bank and Financial Accounts (FBAR) that is due on June 30. Failure to file an FBAR in itself carries stiff civil penalties. When willful criminal charges are also possible.

Reentry to the United States comes with a customs declaration form. Anyone entering the country must disclose currency valued at more than $10,000.

Bankruptcy fraud charges

She will forfeit at least $120,000, which indicates that she brought back a significant sum in Australian currency. Prosecutors didn’t provide the exact amount she failed to report or how she tried to sneak it back into the country.

Apparently, this was not the first time that the star had allegedly tried to hid money during her Chapter 11 bankruptcy. Last fall, she was charged with hiding as much as $775,000 from the reality television show and other spinoffs.

Investigations were prompted when a channel-surfing bankruptcy judge questioned her claimed monthly income.

Allegations related to white collar financial crimes carry very hefty civil penalties and criminal charges. It’s crucial to seek assistance from an experience attorney at the first sign of any investigation.

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