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 handed down the sentence after a jury found Seidling guilty following a four-day trial in Madison. In addition to the prison term, Seidling was ordered to pay a $500,000 fine.
U.S. Attorney O’Shea remarked on the case, stating, “Seidling was a recurring and shameless financial predator.” He expressed gratitude to the prosecutors and partners involved in bringing Seidling to justice, including the U.S. Trustee’s Office, FBI, Wisconsin Department of Justice – Division of Criminal Investigations, and U.S. Postal Inspectors.
FBI Milwaukee Special Agent in Charge Michael Hensle emphasized the importance of maintaining public trust by pursuing individuals who engage in fraudulent activities for personal gain. “The FBI will continue to work diligently with our partners to pursue justice and combat any fraud which negatively impacts financial institutions and the American people,” he said.
Seidling's fraudulent activities began when he filed for bankruptcy in 2022. He falsely claimed that he had no significant assets or business-related property when he actually possessed approximately $20 million hidden behind sham trusts and partnerships. Despite claiming incapacitation due to health issues during his bankruptcy proceedings, Seidling continued managing his businesses and engaging in various activities.
His contempt conviction stemmed from violating a court order that prohibited him from transferring assets held by his businesses during bankruptcy proceedings. Seidling defied this order by moving real estate assets and draining bank accounts.
Judge Peterson justified the above-guideline sentence by highlighting the extent of Seidling’s criminal conduct and perjury during his trial testimony. He described Seidling as a “systematically dishonest defendant” who resisted accountability for his actions.
Seidling's past convictions also influenced his sentencing; he had previous federal convictions for interference with commerce by threats or violence in 1991 and mail fraud in 2009. These past offenses demonstrated his skill at using legal systems to exploit others.
Despite being represented by a court-appointed attorney due to claimed indigency, Judge Peterson determined that Seidling's claim was false and ordered him to reimburse the U.S. Treasury for his defense costs.
The investigation involved multiple agencies including the Federal Bureau of Investigation, 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 led by Assistant U.S. Attorneys Meredith P. Duchemin and Megan R. Stelljes.
