The Sconi

Bernard Seidling, a 74-year-old resident of Hayward, Wisconsin, has been sentenced to seven years in federal prison for bankruptcy fraud and criminal contempt of court. Chief U.S. District Judge James D. Peterson also imposed a $500,000 fine on Seidling following his conviction by a jury after a four-day trial in Madison.

U.S. Attorney O’Shea described Seidling as "a recurring and shameless financial predator" and expressed gratitude to the prosecutors and partners involved in the case, including the U.S. Trustee’s Office, the FBI, the Wisconsin Department of Justice – Division of Criminal Investigations, and the U.S. Postal Inspectors.

FBI Milwaukee Special Agent in Charge Michael Hensle commented on the sentence: “Mr. Seidling's sentence reflects the FBI's commitment to ensuring public trust by pursuing individuals who defraud others for personal gain.”

Seidling filed for bankruptcy in 2022 but misrepresented his financial situation by claiming he had no significant assets or real estate transactions when he actually possessed approximately $20 million hidden through various trusts and partnerships. Despite his claims of incapacity due to health issues during bankruptcy proceedings, evidence showed he continued managing businesses and engaging in other activities.

Seidling was also found guilty of violating a court order that prohibited him from transferring assets during bankruptcy proceedings. He transferred real estate and withdrew over $1 million in cash which he concealed under his house.

Judge Peterson cited several factors for imposing an above-guideline sentence, including Seidling’s extensive criminal conduct and perjury during trial testimony. The judge remarked on Seidling being "systematically dishonest" and noted his previous federal convictions as indicative of a potential risk to reoffend.

Throughout the case, Seidling was represented by a court-appointed attorney under claims of indigency which Judge Peterson later determined were false. Consequently, Seidling was ordered to reimburse the U.S. Treasury for his defense costs.

The investigation involved multiple agencies including the FBI, Wisconsin Department of Justice Division of Criminal Investigation, United States Postal Inspection Service with assistance from the Office of the United States Trustee. The prosecution was managed by Assistant U.S. Attorneys Meredith P. Duchemin and Megan R. Stelljes.