“Dance Moms” star Abby Lee Miller has made a deal with federal prosecutors in the criminal cases (yes, plural, keep reading) filed against her and will enter a guilty plea on June 27.
Last year, Miller, the star of the reality TV show “Dance Moms” was indicted on charges of bankruptcy fraud, concealment of bankruptcy assets, and false bankruptcy declarations.
The charges were tied to an action in bankruptcy court, filed by Miller in 2010. As part of the bankruptcy proceedings, Miller was required to disclose information about her circumstances including her assets, liabilities, income and potential income. During the period of reorganization, Miller was required to keep her creditors informed about her finances by filing what’s known as a Monthly Operating Report. According to the indictment, Miller schemed to conceal income she earned between 2012 and 2013 from her performances on “Dance Moms” and related spinoff TV shows. She also allegedly worked to hide income from her Masterclass dance sessions as well as merchandise and apparel sales.
When information came to light suggesting that Miller was evading disclosure, prosecutors claim that Miller ramped up efforts to conceal income. Miller reportedly asked companies to make checks payable to other parties, including her mother, rather than to her, and created companies in Florida that she used to route income away from accounts where the funds might be disclosed. The amount of income that Miller is alleged to have concealed is $755,492.85.
IRS-CI Special Agent in Charge Akeia Conner said about the investigation at the time, “Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts the creditors and American Taxpayers.” She then added, “Concealing assets from the Court and not paying taxes is a gross violation of civic duty and IRS Criminal Investigation will work diligently with our law enforcement partners to pursue those who do so.”
Miller was initially charged with 20 criminal counts. That was before this week.
In a new criminal case filed on June 20, 2016, Miller has been charged on information with transporting more than $10,000 into the U.S. from a foreign country without reporting the transaction. The feds named the country as Australia and further pinged August 7, 2014, as the date of the occurrence (you’ll note that predates the filing of charges in her prior, related criminal case). While the exact amount wasn’t spelled out in court papers – just over $10,000 – federal prosecutors are looking for a forfeit of a “minimum of $120,000 in United States currency.”
To be clear, there’s no limit to the amount of cash that you can bring into or out of the country: the notion that you can only take so much in or out is a myth. However, by law, a person or persons traveling together must report coin, currency or negotiable monetary instruments in excess of $10,000 by filling out a form FinCEN 105, Report of International Transportation of Currency and Monetary Instruments (downloads as a pdf).
Miller and her star dancer, Maddie Ziegler, were in Australia in August of 2014 to meet fans and host a master dance class. Miller posted a picture of the class on her Instagram account with the caption:
Thank you Sydney!!! The dancers in my master class were amazing! Dance teachers down under should be proud! #alcd #dancemoms #abbysbook #abbyleeapparel #thegangsallhere
The trip fired speculation at the time that Miller might be taking her successful franchise abroad. One year later, Miller was hit with criminal charges relating to her business ventures.
Initially, Miller pleaded not guilty to the initial charges. However, these additional charges were brought on information. That typically means that a defendant has pleaded guilty and waived the right to an indictment. According to court documents, that appears to be the case here. An official guilty plea to charges is expected on Monday, June 27.
The statement, released by Miller’s lawyers, Brandon Verdream and Robert Ridge, is as follows:
Events over the past several months have been extremely challenging for me, my family, my friends and most important, my students. Because of this I made the very difficult decision to close the door on this chapter of my life by accepting responsibility for mistakes I have made along the way. I appreciate all the wonderful messages of support I’ve received from around the world and look forward to the future and getting back to my life’s work; helping young dancers fulfill their potential.
Miller’s show, “Dance Moms,” airing on Lifetime, is currently in its sixth season.
