(Bankr. S.D. Ind. Apr. 8, 2016)
The bankruptcy court rules that the government’s claim for penalties incurred by the debtor for false representations in unemployment benefit applications are not dischargeable. The debtor conceded that the debt for repayment of benefits was not dischargeable but disputed that the penalties imposed were dischargeable. The court finds that the penalties arose out of the fraudulent representations and thus were not dischargeable pursuant to 11 U.S.C. § 523(a)(2). Opinion below.
Attorney for Plaintiff: Office of the Indiana Attorney General, Maricel E.V. Smiles
Attorney for Debtor: Lloyd E. Koehler