Oct 10, 2008 3:03 pm US/Pacific
Yuba City Doctor Accused Of Bankruptcy Fraud
YUBA CITY (AP) ―
A Yuba City doctor and former congressional candidate faces federal charges that he falsely filed for bankruptcy to avoid paying creditors.
Prosecutors say 59-year-old Arjinderpal Sekhon transferred more than $1.5 million in property and income to his wife. When he declared bankruptcy in 2003, Sekhon claimed assets of just over $26,000.
The transfers allegedly happened right after Sekhon lost a sexual harassment lawsuit by a former employee. He was ordered to pay her $483,000, which an arbitrator later reduced to $175,000.
Sekhon was indicted Thursday on a total of seven counts related to bankruptcy fraud. His wife, Daljit Sekhon, also faces five counts.
The couple denies the allegations.
Sekhon has made several runs for political office, most recently in May, when he narrowly lost the Democratic primary in the 2nd Congressional District to Jeff Morris.
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