Villanova Man Gets Prison For Lying On Bankruptcy Filings

VILLANOVA, PA — A Villanova businessman will spend just over a year in prison for lying about his assets when filing for bankruptcy.

First Assistant United States Attorney Jennifer Arbittier Williams said Wednesday Scott Korn, 57, of Villanova, was sentenced to one year and one day in prison, as well as three years of supervised release, and was ordered to pay a $50,000 fine for perjury and financial fraud.

In August 2019, Korn pleaded guilty to an indictment charging him with concealment of assets in a bankruptcy proceeding, and swearing a false oath or account.

Those charges came after a 2009 lawsuit filed against Korn and several of his companies for breach of contract among other issues.

In April 2014, the case proceeded to trial in the Philadelphia Court of Common Pleas and the jury returned a verdict against Korn and his companies in the amount of roughly $2.4 million.

Then over the next few days following the verdict, Korn bought a BMW X3, a Porsche 911, a Porsche Cayman. All were paid for with his American Express credit card.

Additionally, Korn purchased a cashier’s check for almost $200,000, payable to himself, drawn on his personal bank account. Korn cashed the check the next day at a check cashing business, getting about $196,000 in cash after paying a roughly $4,000 fee to the check cashing business

Korn then filed for Chapter 11 bankruptcy.

Under the bankruptcy code, debtors must complete financial schedules, including a schedule listing all of their personal property, as known as assets, and a Statement of Financial Affairs which discloses all financial data. Debtors must also file a declaration, under penalty of perjury, that they have read the schedules and summary they are submitting and that all are true and correct to the best of their knowledge.

Korn did not list the recently purchased vehicles among his assets or in his schedule of personal property when filing for bankruptcy.

He did however include American Express in his schedule of creditors, along with the total debt that he owed American Express — an amount that included the purchase price of the cars — without revealing what was purchased on this credit card.

Korn also didn't disclose the liquidation of nearly $200,000 in cash from his bank account, instead listing that bank account with an approximate balance of only $9,300.

Additionally, he left out other assets from his bankruptcy statements including a 21-foot ski boat and two wave runners.

At a later proceeding in the bankruptcy, Korn swore an oath under penalty of perjury and testified that he did not own any cars and only had an old motorcycle and a leased Honda.