Kansas City payday lender pleads guilty to bankruptcy fraud

KANSAS CITY, Mo. (AP) — The co-owner of a one-time Kansas City payday lending company has pleaded guilty to a bankruptcy fraud count related to his 2015 personal bankruptcy, in which prosecutors say he hid more than $1 million in assets.

Del Kimball, 53, pleaded guilty Tuesday in federal court and faces up to five years in prison when he’s sentenced on June 2, the Kansas City Star <a target=”&mdash;blank” href=”https://www.kansascity.com/news/local/article248603740.html”>reported</a>. Kimball will remain free on bond until his sentencing.

Prosecutors said Kimball and the payday loan company he co-owned, LTS Management, were forced into bankruptcy by creditors who said they were owed millions. Two years later, a bankruptcy trustee accused Kimball of concealing assets, bank accounts and income from his bankruptcy disclosures. Those included the sale of a warehouse for nearly $1 million, the sale of three cars for more than $120,000, eight wristwatches worth more than $29,000 and a painting by Rolling Stones guitarist Ronnie Wood.

Kimball was charged with failing to disclose the transfer of money to a relative and the existence of a company he owned that was formed to conceal income from creditors.