Miller is charged with hiding $775,000 by allegedly concealing her income during her bankruptcy.
Dance Moms star Abby Lee Miller has been indicted for bankruptcy fraud.
The 50-year-old dancing instructor is charged with hiding a whopping $775,000 by allegedly concealing her income during her chapter 11 bankruptcy.
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According to the indictment, she allegedly defrauded the bankruptcy court by lying about money she earned from her Lifetime TV show, spin-off series, studio sessions and merchandise sales between 2012 and 2013.
The indictment also alleges that she secretly created bank accounts to hide her earnings and, in turn, gained better terms to restructure her debt.
"Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court," said U.S. Attorney David J. Hickton in a statement.
Special Agent in Charge Scott S. Smith, from the Federal Bureau of Investigation’s Pittsburgh Division, said that bankruptcy can be a "lifesaver for honest individuals."
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"But allegations of fraud and abuse threaten the integrity of the bankruptcy process and the public’s trust in it," he added. "We take our responsibility to pursue allegations of bankruptcy fraud seriously."
The indictment didn’t seem to affect her production schedule though, as she was inside her dance studio taping with crew members on Wednesday.
She faces up to five years in prison and up to $5 million in fines if convicted.
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