'Dance Moms' Star Abby Lee Miller on Verge of Being Indicted on Federal Bankruptcy Fraud Charges?
"Dance Mom" star Abby Lee Miller is on the verge of being indicted on federal fraud charges alleging that she hid some $750,000 in income before formally filing for bankruptcy.
Hollywood Life reports the outspoken Lifetime reality series star faces as many as 20 counts stemming from the alleged scheme, which could result in her facing as many as five years behind bars and a fine of up to $250,000.
Miller is also accused of being untruthful on various financial reports related to her dance studio, which include completely failing to report at least parts of her income over the time in question. Most of the unreported money is rumored to stem from salary Miller was paid for "Dance Moms" and other related TV appearances.
"Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court," U.S. Attorney Hickton said in confirming ongoing probe against the 50-year-old Miller.
Acting Inspector in Charge of the U.S. Postal Inspection Service of the Pittsburgh Division David McGinnis said, "The investigation of Abigale Lee Miller demonstrates our commitment to identify and prosecute those who commit bankruptcy fraud."
Since starring on the long running series, Miller has known more than her share of troubles. Back in early 2014, "Dance Moms" mama Kelly Hyland allegedly attacked Miller over her treatment of her two teenage daughters, whom she felt were being overlooked from among her students.
Hyland, mom of Brooke and Paige Hyland, was eventually jailed on assault and harassment charges.
"Abby was searching for new talent and Kelly was getting pissed off that her kids were being overlooked," a source said. "When Abby dared to bring a potential pint-sized star by the studio ... Kelly freaked out."
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