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You are here: Home / Abby Lee Miller / Abby Lee Miller Charged With Bankruptcy Fraud

Abby Lee Miller Charged With Bankruptcy Fraud

October 14, 2015 by tamaratattles 66 Comments

Dance Moms Abby Meltdown

I had a very busy day today and despite waking up to a mailbox full of things to write about, I haven’t had much time today. I’ve got some health issues to deal with and some insurance people to wrestle with so I’m going to be away from my keyboard a good bit.  But enough about me,  we have another reality star  headed toward Camp Cupcake!  Dance Mom’s matriarch, Abby Lee Miller has been busted by the Feds for pretty much the same thing the Giudices  are doing time for. Lying to the bankruptcy court!

SEE ABBY LEE MILLERS NUMEROUS MELTDOWNS FROM LAST SEASON HERE!

Did Abby Lee Miller learn nothing from Teresa Giudice?!  Today, Abby was charged by the feds with  twenty counts of bankruptcy fraud, concealment of bankruptcy assets and false bankruptcy declarations Dance Moms Holly not a pretty sight

 

The indictment states that that when Abby filed bankruptcy on her business in December of 2010 in order to  reorganize her dance studio’s finances, she schemed to defraud the bankruptcy court by hiding $755,000 of  income from  Lifetime salary from Dance Moms and spinoff shows like the dance contest , as well as from dance sessions and merchandise sales. Federal agents claim she created bank accounts to hide the income and instructed others to conceal income.

Wow, it looks like she is stone cold busted. The feds do not play. Don’t believe me ask Teresa and Joe Giuice. I fully expect her to do some time. At Camp Cupcake, she better save her tears for her pillow!  Who do you think can handle their prison time better, Abby Lee? Or Teresa.  I don’t know if Abby Lee is tough enough. Thoughts?

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Filed Under: Abby Lee Miller, Dance Moms, Entertainment News, Lifetime Tagged With: 2015, Abby, Abby Lee, Abby Lee Dance Company, Abby Lee Dance Competition, Abby Lee Miller, ALDC, Entertainment, Entertainment News, Jo Jo, Pittsburgh

About tamaratattles

Come for the tea. Stay for the shade. Not for the easily offended. You're a special snowflake just like everyone else.

Comments

  1. Dawn says

    October 14, 2015 at 6:33 pm

    I think the only way Abby will handle lock up is with the right drugs to make her numb and compliant. Probably the same thing I would need. I don’t actually know if they give people Xanex and the like.

    Reply
    • Minky says

      October 15, 2015 at 3:04 am

      Low carb diet advocates argue that prisoners get fed a high carb, junk food diet precisely because it makes you weak, slow-witted and docile. IDK.

      Reply
  2. JoJoFLL says

    October 14, 2015 at 6:42 pm

    People like the Guidices and Abby Lee Miller think they are smarter than the law.

    Reply
    • tilmont says

      October 15, 2015 at 11:56 pm

      High profile people eventually get found out but many ordinary people get by year after year. They might finally get caught and the interest accumulates year in and year out, but they’ll never end up paying. It’s more common than one would think.

      Reply
  3. erikainhb says

    October 14, 2015 at 6:44 pm

    The level of arrogance of some folks that they’ll beat the system in situations like this never cease to amaze me.

    I actually think Teresa would fair better in prison as she deals with grown women in an often times less than positive manner as a grown up to grown up (being a relative term) vs Abby who likes to IMO dominate on little girls. I don’t think Abby would deal as well in a peer situation (aka fair adult fight) where she couldn’t bully someone into submission and tears.

    I’m not a Teresa fan but comparing the two, Abby makes Teresa look good and I wouldn’t have thought that was possible

    Reply
    • Minky says

      October 15, 2015 at 3:11 am

      I’ve watched Dance Moms once. I could not emotionally deal with watching that level of kid-tested, mother-approved child abuse. As far as I’m concerned, this Abby creature is beyond horrible. I got yelled at, berated and beaten constantly as a kid. No child deserves that! Ever!

      If she speaks to her fellow inmates the way she does to those girls and their mothers, she deserves whatever she gets.

      Reply
  4. powerthoughtsblog says

    October 14, 2015 at 6:48 pm

    Kelly and Christi are someone where smiling right now!

    Reply
    • Dawn says

      October 14, 2015 at 6:59 pm

      I bet you are right about that. This may also explain why Abby seemed so stressed and on edge. When she did give her reasons, such as having the LA dance space interior built, picking paint colors, etc, that seemed like pretty flimsy excuses IMO. She probably new she was bring investigated.

      Reply
      • Dawn says

        October 14, 2015 at 7:00 pm

        Knew, sorry.

        Reply
      • msdc says

        October 19, 2015 at 5:41 pm

        I do not like that Christi. After she left the show, she criticized those still on the show claiming they were horrible people for letting Abby berate their kids. It was okay for her child do it for however many years so she could reap whatever rewards came from it, but all of a sudden the other mothers are awful for allowing it? Puhleeze! Self-righeous hypocrite.

        Reply
    • Angel(?) says

      October 14, 2015 at 8:22 pm

      Wouldn’t be interesting hear what Kelley and Christi are saying to each other about this.

      Reply
  5. Lisaj says

    October 14, 2015 at 6:54 pm

    Is it just me or is karma coming faster these days?

    Reply
    • fivecatsownme says

      October 14, 2015 at 7:36 pm

      Karma is a bitch.

      Reply
      • Micheal (@MichealHay) says

        October 15, 2015 at 1:56 am

        Look…you just haven’t given Karma a chance, girl.

        I’ll set up brunch where you both can get to know each other. Karma really is very sincere when you get to know her.

        Reply
      • Karma Grant says

        October 15, 2015 at 3:10 am

        Yes, yes she is.

        Reply
      • Minky says

        October 15, 2015 at 3:15 am

        I love that bitch! Karma can crash at my pad any time. We can smoke weed and drink wine coolers together, and talk about our feelings. Maybe some milkshakes or cookies for when we get the munchies. Good times!

        Reply
      • Sliceo'pie says

        October 15, 2015 at 12:05 pm

        To coin a phrase…

        Reply
  6. Brittany says

    October 14, 2015 at 6:54 pm

    I think that Teresa can handle Camp Cupcake much better than Abby.

    Reply
  7. PaganChick says

    October 14, 2015 at 7:18 pm

    The most surprising thing about this to me is the realization that Dance Moms has actually been around since 2010. I had no idea the show had been on that long since I try to avoid reality shows that center around children.

    Reply
  8. DarkThoughts says

    October 14, 2015 at 7:19 pm

    What I wouldn’t give to know who “inspired” the Feds to take a better look at Ms. Abby. That’s why being an insufferable cunt satchel es no Bueno.

    Reply
    • calipatti says

      October 14, 2015 at 8:22 pm

      Herself, no one else, paper trail

      Reply
  9. Erica says

    October 14, 2015 at 7:31 pm

    Hahahahaha…

    I wonder if this was why she initially couldn’t get into Australia. (wasn’t that a thing that happened???? I can’t remember… my niece watches it, and I sometimes watch it with her)

    Reply
    • Laura Specht says

      October 14, 2015 at 7:47 pm

      I think she couldn’t find her passport in that instance.

      Reply
  10. T D says

    October 14, 2015 at 7:34 pm

    Starting to worry about my soul but this makes me want to put on my red shoes and dance.

    Reply
  11. fivecatsownme says

    October 14, 2015 at 7:35 pm

    Abby will not do well at all in Federal Prison. She is more abrasive and self important that Teresa. She also lacks Teresa’s fan base. Abby can be a good target for universal hatred by both inmates and guards.
    I think she will plead for house arrest because of her morbid obesity/health problems. If she is kept at home, the feds won’t have to cover her health care.

    Reply
    • Gabriella says

      October 15, 2015 at 10:19 am

      But didn’t she lose a ton of weight due to lap band surgery?

      Reply
      • fivecatsownme says

        October 15, 2015 at 11:32 am

        She can remove the lap band. She did lose weight.

        Reply
  12. bendy says

    October 14, 2015 at 7:45 pm

    Too funny since I just saw her on DWTS and she looked loopy!

    Reply
  13. Laura Specht says

    October 14, 2015 at 7:45 pm

    I think Teresa is handling prison better than Abby because of all of the family support she has from her husband and kids. Abby doesn’t have that kind of unconditional love.

    Last season makes a lot of sense now. Everyone assumed that Abby’s increasingly irrational behavior was written off to the stress of opening her new studio but I would bet my life savings (yes, all $37) that a lot of her alleged financial misdeeds were just registering with the feds.

    Reply
    • Minky says

      October 15, 2015 at 3:23 am

      “I would bet my life savings (yes, all $37)” Laura Specht, it is my honor to present you with the award for… BEST COMMENT EVER! (applause, applause, applause)

      Reply
  14. swizzle says

    October 14, 2015 at 8:00 pm

    Oh Abby will not fare well in prison. At least Teresa has some social skills. Abby is a nut job who only knows how to scream at little girls while she sits on her ass. Stop hiding money, people Duh! Best case scenario for Abby now is getting in shape in prison like Teresa is doing. Then Abby can come out and push her Fit, Fab Felon workout DVDs.

    Reply
  15. Jaded says

    October 14, 2015 at 8:05 pm

    The best thing about watching people like Abby and Teresa on television is watching how the mighty have fallen. Makes me want to actively be a better person.

    Reply
  16. AKA Riley says

    October 14, 2015 at 8:17 pm

    What I would give to have a big fat tv check. Why is it never enough for some people?

    Reply
    • Sequoia says

      October 14, 2015 at 8:32 pm

      It’s called Greed, sweetie.

      Reply
      • Simone says

        October 14, 2015 at 9:29 pm

        Wait…she thought she could hide her income and default on her business while being on the show? The bankers probably tipped the IRS off, they want their money..bad move Abbey, bad move.

        Reply
      • Simone says

        October 14, 2015 at 9:31 pm

        Meant Feds not IRS.

        Reply
      • Minky says

        October 15, 2015 at 3:28 am

        Just like those people on the Hoarders show hoard, well, all kinds of stuff, greedy people hoard money. When you have so much money that you couldn’t possibly spend it in multiple lifetimes, yet you still want more, I’m sorry, IMO that’s a sickness. A disability even. Like a drug addict who forsakes everything; love, friendship, family, living indoors, just to get drugs, money-addicts do the same. They don’t even care if their families hate them.

        Reply
  17. jen says

    October 14, 2015 at 9:25 pm

    I think Theresa is strong enough and healthy physically and mentally for the most part but Abby is not. She is a mean awful lady. Very stupid to do this. Why do reality stars think they will get away with it?

    Reply
  18. katimir2 says

    October 14, 2015 at 9:37 pm

    There must be other skeletons that will fall out of the closet. If she’d do this, what else has she done in the name of greed. Don’t people on TV know that there are folks out there who will want to get your ass if they can? And especially someone as mean and obviously entitled as this one.

    Reply
  19. Xanadude says

    October 14, 2015 at 10:30 pm

    One word: hubris

    Reply
  20. steve says

    October 14, 2015 at 10:42 pm

    Maybe after its over Abby can make a new show, Dance Housewives of…

    Reply
  21. Xanadude says

    October 14, 2015 at 11:50 pm

    This is going to be interesting, because she can’t fault anyone but herself on this one – what’s she going to do? Say the Feds have sickled feet? Big ears? A lisp? She can’t even pull out the bereavement card because she did this while her mother was alive. And no fake/gay boyfriend to pretend to run to.
    And you know Lifetime isn’t going to cover her behind like Bravo does for Tre.
    Holly’s looking smarter every day for not putting her child in Abby’s management bubble.
    My question is: will the girls and the moms be released from the restrictive “management” contracts with Abby and will Maddie find proper representation with a reputable manager now?

    Reply
    • calipatti says

      October 15, 2015 at 12:26 am

      Xdude, wow the girls might be freed.
      I hope you are right.

      I enjoyed watching the girls but stopped watching way back.
      Abby spoke to the children horribly. Her rating boards of the girls was out dated.
      My sons had a few tough coaches but they never spoke like Abby does.

      Reply
      • Erica says

        October 15, 2015 at 12:57 am

        Abby will probably try to control them via email like Teresa G. does her family.

        Not sure orange is a good color for Abby!!!!

        Reply
  22. Xanadude says

    October 15, 2015 at 1:19 am

    “Instructed others to do the same.” Who? The moms? The product placement people? Cathy? The Lifetime Andy Cohen manque? and I wonder if they can take a Coercion charge as well?

    Reply
  23. calipatti says

    October 15, 2015 at 2:07 am

    SMH reading about Abby’s stupidity.

    Reply
  24. calipatti says

    October 15, 2015 at 2:13 am

    TT’s question … Not Abby Lee.
    I see her having a mental breakdown in the courtroom. Falls on floor, screaming.

    The women prisoners won’t tolerate Abby’s crying and whining.
    Bologna on white bread with catsup pack.

    Reply
    • jen says

      October 15, 2015 at 2:30 am

      So true.

      Reply
  25. Queen of the Nile says

    October 15, 2015 at 8:14 am

    OMG … I can’t believe that Abby was this stupid. Trying bankruptcy while hiding almost $800,000?? Xanadude nailed it again with the hubris post.

    Reply
  26. Cheychey says

    October 15, 2015 at 9:36 am

    I can’t imagine that the women in prison who are missing their kids are going to be supportive to a reality star who took such joy in berating others children. I think she is a particularly vile person. When you take a personal interest in bullying children be it because of a lisp or their ears you have a sick mentality. If it was done in a constructive way between the adults to further the kids career that would be great. But it was mean the way she treated many of the girls. They do not have to be treated with disrespect to get them ready for the hard knocks of a dancer.

    Reply
  27. Chloe says

    October 15, 2015 at 9:48 am

    I have never watched her but I will be curious to see if she gets a similar sentence as Teresa…

    Reply
  28. jeannie from jersey says

    October 15, 2015 at 12:39 pm

    Abby may have hid money into her mother’s account, and then when she passed away the $800,000 was discovered. How could a 90 year old woman make such huge deposits on a limited income- so that might have raised a red flag. (I read that it said that she instructed others t o hide money as well…who else does she have in her life that she would “instruct” and trust to hide the money.)
    I don’t get the arrogance- or stupidity of these reality people…..

    Reply
    • tamaratattles says

      October 15, 2015 at 1:55 pm

      You make a good point Jeannie, that would be a likely place to stick the money . As the only heir she would get it back.

      What I’m not clear on (I’m a bit under the weather and not thinking clearly so this may not make sense) is that the AP story says it is business reconstruction bankruptcy on her STUDIO. So I’m not sure how her income from other ventures plays into the business bankruptcy. Anyone?

      Reply
      • PaganChick says

        October 15, 2015 at 3:28 pm

        Is it possible she tried to discharge personal debt as part of her business bankruptcy? Because I wasn’t sure about that either.

        Reply
      • Simone says

        October 15, 2015 at 3:53 pm

        Business owners do default and play that game in Florida a lot, because Florida, the Abbey has got to be the only fool I know that actually try to play game with recorded income from another business you cannot even attempt to play that game if you’re getting paid from someone else they’re reporting you’re income to the IRS dummy. Abbey probably has a case against her bankruptcy lawyer…definitely time for her to throw him under the bus…and then I work for Teresa but I think we can make it work

        Reply
      • Erica says

        October 16, 2015 at 2:31 am

        I am by NO MEANS an expert… but I wonder if she didn’t bother to form an LLC or Incorporate a business to own the studio. She might PERSONALLY own it, “doing business as Abby Lee Dance Studio”. If that is true, then everything counts. (What county is she in in Pennsylvania? If someone knows the county and physical address – I could figure out if she owns the building personally or if not, what entity owns it)

        OR, I think – but I could be wrong – that you can, as a business owner who has formed an LLC or a corporation, do something called “personally guarantee” a business mortgage or loan. If she did something like that – then her income from other ventures could come into play. I don’t own a business, but work for my folks who have owned their own businesses my entire life (all operate out of the same office – but separate entities, partially for legal reasons, partially because they are different partnerships, and partly to protect the assets. HOWEVER, I seem to remember times when the banks needed to know their and the partners personal financial situation. (Might be the personal guarantee situation)

        Oh wait – I thought of another thing… in order to use the actual studio, part of the agreement with the production company would be to pay the STUDIO for use of the facilities, name, etc. She could also be operating under one giant corp – meaning all of her ventures fall under that LLC or Corporation.

        I’m sure this would be spelled out in some of the court papers – but it would be interesting to hear from a bankruptcy attorney.

        Reply
      • Erica says

        October 16, 2015 at 3:23 am

        TT – sent you an email. with some potential dirt. Didn’t know if you would be notified through here first, or there.

        Not sure if orange is going to be a good look on Abby!!!!!!!!

        Reply
  29. loriflack says

    October 15, 2015 at 3:01 pm

    Since I can’t stand that show but see/hear about it sometimes, my uneducated opinion is…
    She has appeared super fit and tan recently.
    I just read on this thread she had lap band surgery ( like Lauren Manzo)?
    Well then she is LUCKY she didn’t go for the full on gastric bypass surgery.
    The side effects from that are brutal and embarrassing, especially in an open toilet with zero privacy. Add to that the carbohydrate food she has to eat…

    I read an update of that perv who has Abby’s face tattooed on his neck.
    He also has P C tattooed on his FACE.
    P C Means Protective Custody since he is a molester.
    I view Abby in the same light.

    Reply
  30. Simone says

    October 15, 2015 at 3:57 pm

    I thought part of a bankruptcy attorney’s job was to let you know whether he can even legally file for it as your legal representation?

    Reply
  31. deco says

    October 16, 2015 at 1:04 pm

    Before the show even started didn’t Maddie’s mom, Melissa, loan her money to keep the studio running?
    She was nearly broke then. I always thought that had something to do with Abby’s preferential treatment of the Ziegler’s. Meaning Maddie and Mack.

    Reply
  32. Xanadude says

    October 16, 2015 at 1:51 pm

    Interesting – different places report the ALDC as being a non-profit. The ALDC website says it was “originally a non-profit,” but that looks like a recent edit, as a good search still shows the opening line as being “We are a Non-profit Organization, formed twenty-six years ago to afford promising …” IF Abby was running the place as a nonprofit and was taking paychecks from Lifetime, etc. and not declaring them by putting them into the nonprofit accounts, that would explain some things.

    Reply
    • tamaratattles says

      October 16, 2015 at 10:02 pm

      Well I guess I can scrap my post I was working on, and if you don’t mind, PLEASE READ THE COMMENTING RULES and comment on things you read other places, other places. I don’t have any energy to waste at the moment on moderating. Thanks.

      Reply
      • Erica says

        October 16, 2015 at 10:36 pm

        Damn.

        Reply
  33. peachteachr says

    October 16, 2015 at 5:11 pm

    Just a side comment, I read a month or so ago that Maddie was worth over $2 million. She’s a cute girl and maybe she can be the star she and her mom long for her to be. Nia has her thing going, but what about Jill and Kendall?

    Reply
  34. peachteachr says

    October 19, 2015 at 8:08 pm

    Nancy Grace is doing Abby Lee Miller right this minute.

    Reply
    • Erica says

      October 19, 2015 at 11:54 pm

      That is an image I didn’t need. Damn my dirty mind!

      Reply

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