MADISON, WIS. – A Hayward, Wisconsin man has been convicted of two counts of bankruptcy fraud and one count of criminal contempt of court. Bernard Seidling, 73, also of Key West, Florida, was convicted following a four-day trial in federal court in Madison.
The jury reached a verdict yesterday afternoon after about five hours of deliberation. The guilty verdict is announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
DrydenWire's previous reporting on Bernard Seidling:
- 2022: Washburn County Brings Civil Action Against Hayward Man Regarding Land Contract Transactions
- 2023: (Insider) Criminal Fraud Charges For Property Transactions Filed Against Man In Washburn County
- 2023: (Insider) Felony Charges Pile Up For Bernard Seidling: Latest Allegations Include False Swearing, Bail Jumping
“Fraud threatens the free and fair markets upon which our economy is based. Moreover, fraud against the Court—in this case, the Bankruptcy Court—has the potential to undermine public trust in the fairness of the courts. This case reflects my office’s commitment to prosecuting financial crime and protecting the integrity of the bankruptcy system,” said U.S. Attorney O’Shea. “I am grateful for our partnership with the U.S. Trustee’s Office and I commend our federal and state law enforcement partners, the FBI, the Wisconsin Department of Justice, and the U.S. Postal Inspectors.”
The FBI is unwavering in its commitment to holding individuals like Mr. Seidling accountable,” stated FBI Milwaukee Special Agent in Charge Michael Hensle. “Criminal bankruptcy fraud threatens the integrity of our legal processes, and the FBI remains committed along with our law enforcement partners in bringing those to justice who would abuse and exploit the bankruptcy system.”
Seidling filed for bankruptcy in 2022. He falsely stated he had no real estate, retirement accounts, trusts, partnerships, or business-related property, and that he had only one deposit account with a balance of $195. Through 25 witnesses and 115 exhibits, the government established Seidling had millions of dollars in personal and business assets, many of which were hidden behind trusts and partnerships.
As one example, the day he filed bankruptcy, Seidling had four bank accounts in the names of trusts and a partnership with a combined balance of more than $3,000,000. In 2023, law enforcement executed a search warrant at Seidling’s Hayward residence and located over $100,000 in cash and over $4,000,000 in uncashed cashier’s checks, most of which were drawn on business bank accounts but made payable to Seidling.
The government also proved Seidling defrauded the bankruptcy court and the bankruptcy trustee by falsely representing that he could not meaningfully participate in the bankruptcy case due to his physical and mental health. This stalled the trustee’s efforts to identify and liquidate Seidling’s assets for the benefit of his creditors. During the period of Seidling’s alleged incapacitation, he continued to manage his businesses, conduct banking activity, and play tennis. He also represented himself and participated in state court litigation.
The government also proved Seidling violated an order issued by the bankruptcy court. A November 2023 injunction prohibited Seidling from transferring or dissipating assets held by 37 of Seidling’s businesses, plus any other business entity Seidling was associated with. The injunction further prohibited Seidling from directing or instructing anyone else to transfer assets. Seidling violated the injunction by transferring real estate and draining bank accounts. He hid more than $1,000,000 in cash in a crawl space under his house. Seidling also used an unwitting individual to transfer a parcel of real estate.
Chief U.S. District Judge James D. Peterson scheduled sentencing for June 11, 2025. Seidling faces a maximum penalty of five years in prison for each count of bankruptcy fraud. There is no maximum penalty for criminal contempt of court.
The case was investigated by the Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, and the United States Postal Inspection Service. The United States also received assistance from the Office of the United States Trustee. The prosecution is being handled by Assistant U.S. Attorneys Meredith P. Duchemin and Megan R. Stelljes.
Last Update: Mar 14, 2025 3:17 pm CDT
