CHARLOTTE, NC – A federal jury in Charlotte has returned a verdict against Malcom Bynum, for fraudulently transferring property to a relative in violation of the Federal Debt Collections Procedures Act (FDCPA), in order to avoid pay restitution due to the victims of his driving crime, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the two-day civil trial.
The FDCPA prevents people who owe a debt to the United States from improperly transferring property and other assets to avoid paying their debts, including court-ordered criminal restitution to victims.
On January 22, 2021, the United States filed a federal civil action against Tico Bynum, Malcolm Bynum, and Donald Bynum for violating the FDCPA. According to the civil complaint, Tico Bynum fraudulently transferred the property at 1344 Downs Avenue to his son, Malcolm Bynum, to avoid his debts, specifically $221,818.98 in restitution payments owed to victims of his crimes. On February 22, 2022, Judge Whitney ruled that the transfer of ownership from Tico Bynum to his son was indeed fraudulent.
According to information in the civil lawsuit and evidence presented in Malcolm Bynum’s civil trial, Malcolm Bynum also transferred the same property to his grandfather, Donald Bynum, to avoid his own debt of $169,923.24, which included both restitution to the victims of his crimes, and special assessments. Trial evidence established that Malcolm Bynum signed a quitclaim deed transferring 1344 Downs Avenue to his grandfather, shortly before Malcom Bynum was charged with multiple violations of federal criminal laws, including conspiracy to commit bank and electronic fraud, financial institution fraud and aggravated identity theft. The evidence at trial further demonstrated that, as part of his plea deal with the government, Malcolm Bynum agreed to make full restitution and reimburse his victims for certain losses suffered as a result of his crimes. According to trial evidence, the day before Malcolm Bynum signed the plea agreement, the quitclaim deed was registered with the Mecklenburg County Deeds Registry, effecting the transfer of 1344 Downs Avenue to his grandfather. dad. The deed stated that Donald Bynum had paid no consideration to Malcolm Bynum in exchange for the property which, at the time of transfer, had a tax value of $207,900. As part of his sentence for the criminal case, Malcolm Bynum was ordered to pay restitution and fines totaling $169,923.24 to his victims. On Tuesday, March 22, 2022, a federal jury found that the transfer of ownership violated the FDCPA.
Next, the Court will determine the appropriate legal remedy, which may include reversing or voiding transfers of ownership and issuing a writ of execution on the property, to satisfy restitution judgments arising from criminal convictions.
“Time and time again, the Bynums have attempted to dodge their financial obligations to victims of crime and thwart U.S. efforts to enforce court judgments. But the proverbial liability ends here,” said U.S. Attorney King. “The collection of federal debts – and in particular restitution judgments awarded to victims of crime – remains a priority for my Office.
In making today’s announcement, U.S. Attorney King commended the Bureau’s Financial Litigation Unit for its investigation of the case.
The Financial Litigation Unit enforces the recovery of criminal restitutions, fines and other monetary penalties ordered as a result of criminal convictions, as well as civil debts owed to the United States. Funds collected for restitution are paid directly to the victims of the crime identified in the criminal judgment. Criminal fines go to the National Crime Victims Fund, which provides grants to various victim groups across the country.
Assistant U.S. Attorneys Julia Wood and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte handled the civil action.