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.

Bankruptcy Fraudsters Jennifer McKinney and Israel McKinney

For the last several months, we have been following the story of Jennifer “MckMama” McKinney and her bankruptcy filing from nearly a year ago. By spring, trustee Gene Doeling had her number, and was preparing to file a motion objecting to the bankruptcy. In not so many words, Mr. Doeling alleged fraud against Jennifer and Israel McKinney, saying things such as manipulated, destroyed, concealed, falsified, false, and intentionally.

In my first story on the MckMama bankruptcy, I detailed the lies and deception of Jennifer Howe Sauls McKinney, both to her blog readers and to the bankruptcy court. Why such a public discussion of this case? There are two reasons. First, bankruptcy itself is a public process. The documents are readily available on Pacer, the federal government’s online warehouse of court documents.

We’ve been discussing here the case of Jennifer McKinney (aka MckMama) and Israel McKinney (dba Kieran’s Contracting) and their alleged fraud perpetrated on the bankruptcy court. Questions have been raised about the likelihood of the McKinneys facing criminal charges, despite a quiet resolution to their original bankruptcy filing (they have waived bankruptcy and can never have those debts discharged in bankruptcy in the future) and the related case filed by trustee Gene Doeling objecting to the discharge of their bankruptcy (resolved with the McKinneys paying $3,500, the value of some of the assets they failed to disclose, and therefore were non-exempt and could be used to pay creditors).

The bankruptcy of Todd Brunner, a Milwaukee area landlord, was thrown out by a judge earlier this year after it was discovered that he did not disclose all his assets. He had $19 million in debts, so not being able to ditch out of them in bankruptcy was probably pretty painful. (The IRS alone says he owes $400,000 to them, but since he hasn’t filed a tax return since 2008, who knows how much higher the real number could be.)

Jennifer McKinney (aka MckMama) and Israel McKinney appear to have settled all claims in their bankruptcy filing in which trustee Gene Doeling alleged fraud, saying:

The Debtors have concealed, destroyed, mutilated, falsified, or failed to keep or preserve any recorded information, including books, documents, records, and papers, from which the debtors’ financial condition or business transactions might be ascertained. The debtors failed to keep adequate books and records from which their financial transactions could be ascertained. The co-debtor was receiving cash payments from photography clients that were not disclosed and for which she has been unable to provide an accounting.

If you’re not interested in the saga of the bankruptcy fraud allegedly committed by Jennifer McKinney (blogger “MckMama”) and her husband Israel, skip this article. In the latest turn of events, MckMama has claimed to have two serious car accidents in the past 8 months that have landed her in the hospital. And oddly enough, both “accidents” occurred when MckMama was alone in the vehicle.

What’s curious about this is that MckMama, the woman who obsessively photographs everything about her life and posts oodles of pictures on the internet, never posted any pictures of her damaged vehicle. Two major accidents in 8 months, and no pictures to share with her loyal readers?

Great news out of the United States Bankruptcy Court in Minnesota, where Jennifer McKinney (blogger MckMama) and Israel McKinney filed for bankruptcy nearly a year ago. After trustee Gene Doeling ferreted out Jennifer’s financial shenanigans, he filed a complaint with the bankruptcy court objecting to the discharge of the debts. Mr. Doeling alleged that the McKinneys engaged in manipulation, destruction, concealment, and falsification of information in the bankruptcy process.

Yesterday a signed Application for Approval of Waiver of Discharge was filed with the court. This means that Jennifer and Israel McKinney have agreed that their debts should not be discharged in bankruptcy.

Once upon a time, there was a popular mommy blogger named Jennifer McKinney. She called herself MckMama, and had a blog called My Charming Kids. She was not noteworthy in any way – - until her fourth pregnancy took a turn for the worse. Her unborn son Stellan was determined to have a heart condition, and with pleas for prayer, Jennifer’s popularity skyrocketed.

The My Charming Kids blog (with McKinney’s “MSC” or “Many Small Children” as the focus) became so popular that at its height, Jennifer was grossing at least $150,000 to $175,000 per year from advertising and money-making gimmicks.

Questions Raised

Not content to post pictures of her kids and stories about everyday life, Jennifer McKinney was determined to live the high life, and pimp out herself, her family, and her blog to maximize her earnings.  She appeared to have it all: great kids, a happy marriage, a beautiful house, a luxury vehicle, media opportunities, trips, and much more.