Abby Lee Miller Changes Plea To Guilty

Dance moms abby
Abby Lee Miller joined the ranks of  reality personalities who will have a felony record in federal court last Monday. The Dance Moms star pled guilty to one count of concealing bankruptcy assets and one count of structuring international monetary transactions. Once again the charges stem from a  Chapter 11 bankruptcy filing.

Last fall, Abby was charged with failing to disclose (and attempting to hide) $775,000 worth of income from Lifetime and her related appearances and master classes that resulted in 20 separate charges. Basically, what Abby is alleged to have done is having payments she was due paid to her mother instead of herself to avoid paying taxes. I am assuming based on the charges that she did that a total of 20 times in amounts that totaled $775,000.

Deadline, who has had the exclusives on most of this court battle, provided new information on Tuesday reporting, “Miller on June 20 was slammed with a whole new case that threatened her with up to another five years in prison and a $250,000 fine. The dance coach allegedly brought more than $10,000 into the country from Australia on August 7, 2014, without the required reporting.”

Dance Moms Abby Meltdown

Deadline also reports,   the following information about the new  charge,“We have all this foreign cash,” a text from Miller was revealed in evidence today.[Monday] “Need a little money laundering.” Miller supposedly had “employees sneak”  more than $120,000 into U.S. from Australia in their luggage in Ziploc bags.

Here is what freaks me out about this new revelation. How many employees are there with Abby when she goes to Australia? She might take one assistant. I doubt that she had a dozen of HER EMPLOYEES with her in Australia. You can only bring back $10,000 from another country (or to another country for that matter) without declaring it. So she would need 12 people and herself to carry back that much money. Is it not more likely that she had the Dance Moms and the girls carry back cash in their suitcases?  So who tipped off the FEDS?

Abby is in the process of hammering out her plea deal.  He lawyers are asking for a six month sentence while the FEDS have a sentence range of 24-30 months.

I have delayed writing about this because things have been very busy, as usual, during the first part of the week and I wanted to look in to another relevant case. Attorneys for Abby have stated that sentencing will not occur until United States Court of Appeals for the Third Circuit resolves United States v. Free. I have been searching for more information on this case that the attorneys claim to be relevant because they are both “zero loss bankruptcies.”

dance moms abby shocked
I did some research to understand what that term means exactly and came up empty. I am going to assume that they are using the term pretty much synonymously with a Chapter 11 bankruptcy. In a Chapter 11 business bankruptcy, the business owner is not asking for debts to be forgiven, but simply restructured so they can pay their debts over a longer time period (usually five years) which would result in no loss to the creditors.

I am going to future assume that US v Free is a similar case where the fraud did not result in a loss of revenue to debtors.  In other words, unlike when the Giudices hid assets to avoid their liquidation and distribution to their creditors in a Chapter seven bankruptcy, in this Chapter 11 filing no creditors would face a loss in the Abby Lee fraud.  It sounds like kind of a way to say that in Abby’s case, the fraud committee did not result in injury to others, thereby a lighter sentence is in order.  Again, this is simply my interpretation of what it going on and wy they are waiting for the Appeals Court to rule on United States v. Free.

The Dateline reporter who went to court described Abby as appearing “seemingly impatient” during Monday’s proceedings.  I can picture that clearly. Do you think she wore curlers to court?

Her attorneys Brandon Verdream and Robert Ridge released the following statement on her behalf:

“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.”

From my perspective, Abby’s fraud was of a much lesser degree than the Giudice’s and involves only two counts. I would expect a much shorter sentence than what Teresa received. However, every judge is different and it will be heavily influenced by the plea deal which is still in the process of being worked out.

Until then, Abby has several Master Class events all over the country planned throughout the summer. The second half of season six is also filming now.

20 Comments

Filed under Abby Lee Miller, Dance Moms, Entertainment News, lawsuit, Lifetime, News

20 responses to “Abby Lee Miller Changes Plea To Guilty

  1. Tori

    Isn’t she fighting with production on dance moms? I wouldn’t be surprised if they’re the ones who tipped off the feds.

    But stuff like this always comes out

  2. Kimoe

    My first thought was Chloe’s mom. They went to Australia with the group.

    I’d think production wouldn’t want to shut down the show (possibly) by her being in jail…….though Gia could carry on maybe or they could do guest choreographers the whole season…….but if she got a six month sentence it could be in the ‘off season too’ (though if production turned her in they couldn’t guarantee that outcome).

    • Savannah

      Gia can not go on with the show because when they compete they are under abby’s name and that means Gia would have to say that the won under her name

  3. Jane

    I loved watching the girls dance but gave up the show because Abby was so abusive. Glad she got caught.

  4. Matzah60

    I don’t think it is anywhere near the magnitude of the Guidice’s. In fact, as you said, Chapter 11 is a five year plan where you restructure and pay all your creditors. You don’t give up any assets and those owed don’t lose any money. What she really did in my opinion was to try and avoid paying taxes on the money. I would be too scared to do it, but I feel angry every year when I owe a bundle in taxes that I often have to borrow or take out of my IRA to pay. Millionaires are sitting in 15% tax brackets and the middle class are paying a shit load of taxes to cover those who pay nothing and those who should pay more.

    She is nuts but she has worked hard and earned her income. She didn’t screw retailers, doctors, builders, landscapers, and so on out of $13 million bucks with no intention to pay them . I hope she only gets 6 months.

  5. Larry

    I’m eagerly awaiting the day when there’s a reality show featuring reality stars with felonies and other convictions as they embark on journeys to rebuild their lives.

  6. T D

    If all reality felons traveled to the clink at once,they couldn’t fit in a Paddy Wagon, despite being packed in tighter than Bristol sardines. Grey Hound bus next. Does Amtrack have a cattle car? Book early get a group discount.

  7. Swizzle

    Oh I think Abby carried back more than $10k with her. She just lied when she entered the country. She should do time for that. Or get on the no fly list. She’ll certainly be selected for extra screenings. My ding dong BIL left the country with slightly more than $10k on him and he spent hours at the airport clearing it up. Plus, they took all the money from him. I think he eventually got most of it back, but it took a while. For years when he flew he’d be heavily scrutinized.

  8. Bev jackson

    I think abby is a real bitch. Wouldn’t let her train my dog must less my child. Hope she gets the full 5 years.if it was a regular joe believe me they would get the full term. Guess if your on tv and have money you can get away with anything. Shame on that judge if he lets her get away with it, he will be as guilty as her!

    • tamaratattles

      You’re an idiot.

    • Calipatti

      Bev, no. I agree with Matza60.
      The money Abby carried was earned, the only fraud committed was not claiming the money when she entered the countty.

      Abby did not steal from or fail to pay a debt to anyone other than taxes.
      A stiff fine would be sufficient, she is not going to try this again.
      I had 2 packs of cigarettes in my checked luggage from Thailand I did not claim & they saw them. They called me out but let it go because there were only 2 packs. ($1.35)

      • Sloth

        She failed to report $700k with her chapter 11 filings. While chapter 11 is a reorganization plan, the success rate is still quite low and creditors often end up getting paid back pennies to the dollar (if they’re lucky.) So by concealing the $700k, her creditors are worse off because they are still owed money, albeit she has the assets to repay them.

  9. I’m so glad she got caught I do love the show but I cannot stand her she’s just entirely too mean to the kids she got hers it always comes around

  10. Brandi

    ooh here’s an idea, get all felonious reality stars and lock them up together and make it a show lol!!!

  11. Calipatti

    I quit watching however this is tough room.
    I am not intelligent enough to get money through customs so I would not try. That is the only reason I would not do it.

  12. T D

    What about her mom? Why put the person you caused such great pain entering this world at risk?

  13. T D

    Her next routine will be set to That’s the sound of the men working on the chain gang. Girl is in dire need of a Shawshank, in light of the whole shit’s creek situation.

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