For some time now, we have been following the Jennifer McKinney bankruptcy trainwreck, in which Jennifer and her husband Israel McKinney were alleged to have falsified information and concealed assets. (In the world of forensic accounting, we call that fraud.) For those new to the site, you can read about the origins of the MckMama fraud, complete with solid proof of the lies.
Today a concerned citizen posted some information about the Cadillac Escalade Jennifer McKinney is now driving. Following a very suspicious car accident in October, MckMama began driving a 2005 Escalade. The citizen retrieved a CarFax report on the Escalade, which showed the vehicle being purchased in January 2012 and registered in Onalaska, WI. The report then showed the vehicle being sold in November 2012, which corresponds to Jennifer’s purchase of it.
Based on some Facebook postings by Jennifer in both January and November 2012, some believed that Jennifer’s father bought the vehicle in January 2012, and retitled it to her in November 2012, around the time that Jennifer’s and Israel’s bankruptcy case was concluding.
I have conducted some research, and I can tell you that Jennifer’s father did not own the vehicle. The Escalade was purchased in January 2012 by Jennifer’s friend Samantha. Jennifer then purchased the Escalade in November 2012. Jennifer paid cash for the Escalade.
Could any of this constitute bankruptcy fraud or insurance fraud? I don’t have any information indicating fraud at this point.
If you need (or want) to buy a new car while in bankruptcy, it is common for bankruptcy lawyers to advise clients to have friends or family members purchase the vehicles for them. The main problem with buying a car while in bankruptcy occurs when you need to finance the vehicle. You may need permission from the bankruptcy court. Since this vehicle was purchased with cash, the issue of incurring debt does not appear to exist.
How could insurance fraud occur? If the original “accident” was not really an accident, that could be insurance fraud. If the insurance company was paying for a replacement vehicle and was deceived about the fair market value of it, I suppose that might be insurance fraud. However, based on the limited information available about the accident, insurance claim, and vehicle purchase, I do not have any reason to suspect insurance fraud at this time.