Alan Fabian Bankrupt
- Details
- Published on Sunday, 04 January 2009
- Written by Brendan Kearney, Daily Record
Alan Fabian Declares Bankruptcy
On the eve of a nine-year prison term for perpetrating a years-long, multi-million-dollar fraud, Alan B. Fabian, the Hunt Valley consultant who stole from investors to support his charity work and extravagant personal lifestyle, declared bankruptcy Wednesday.
In the 92-page filing which details his companies, properties and spending habits, Fabian estimates he owes more than $52 million to more than 100 creditors, including a private jet service, prominent law firms, and his former employer Maximus Inc. of Reston, Va.
His assets total less than $3.7 million, the majority of that total being the home he shares with his wife, Jacqueline, and three children.
Reached at his home Wednesday afternoon, Fabian, 44, said there was no other reason for the filing or its timing "other than that I'm broke." He confirmed that he had recently received a letter from the U.S. Marshals specifying the date he is to report to prison but would not say when that will be.
Neither Fabian's criminal defense attorney, Maryland Federal Public Defender James Wyda, nor his bankruptcy attorney, Marc R. Kivitz, immediately returned phone calls. Messages left with the U.S. Attorney's Office were also not immediately returned.
Fabian, who lists his occupation as "entrepreneur" in the court filing, was indicted in August 2007 and pleaded guilty to counts of mail fraud and filing false tax returns in May. U.S. District Judge Catherine C. Blake sentenced him in late October.
According to federal prosecutors, Fabian duped a Georgia computer-leasing company into paying for nonexistent equipment as part of a series of sale-leaseback transactions.
Fabian had started a consulting company, Strategic Partners International, LLC, in 1996 and sold it in 2000 to Maximus, a publicly traded government consultancy. In 2002, while still at Maximus, Fabian founded Strategic Partners International, Inc. without his employer's knowledge, according to the indictment in the case.
Fabian then used his newly formed corporation to strike the deal with Solarcom, naming Maximus as the guarantor for the equipment he purported to sell and leaseback.
He then used the proceeds of that scheme to found the Centre for Management and Technology, a downtown Baltimore non-profit to counsel other non-profits, and bankroll his personal interests, such as Republican Party politics.
The certified public accountant has filed for bankruptcy before: on behalf of SPI, Inc. and on behalf of CMAT. Federal prosecutors alleged Fabian lied to the bankruptcy court in the SPI bankruptcy.
In his personal bankruptcy, Fabian's debts include $32 million to Maximus, $4.4 million to Provident Bank, $1.7 million to Netjets Aviation, Inc. and Netjets International, Inc., and $1 million to Venable, LLP. As assets, Fabian claims three late-model luxury vehicles, "Jars from the Holy Land" worth $30,000, and two dogs valued at $20.
Fabian also lists a dozen lawsuits against him in the bankruptcy filing.
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