A 74-year-old Wisconsin man has been sentenced to seven years in federal prison and ordered to pay a $500,000 fine after being convicted of bankruptcy fraud and criminal contempt of court, federal authorities announced Wednesday.
Bernard Seidling, of Hayward, was found guilty in March following a lengthy investigation by federal and state agencies, including the FBI, the Wisconsin Department of Justice, and U.S. Postal Inspectors.
“Seidling was a recurring and shameless financial predator,” said U.S. Attorney Timothy O’Shea for the Western District of Wisconsin. “I am grateful to our tireless prosecutors and the many partners who worked to hold him accountable.”
According to prosecutors, Seidling filed for bankruptcy in 2022, claiming he had no significant assets apart from a $195 bank account. In reality, investigators uncovered nearly $20 million hidden in fraudulent trusts and partnerships. Despite stating under oath that he had not sold any property in two years, records revealed Seidling sold a $3 million home in Key West, Florida, in 2021.
Seidling also falsely told the court he was too ill to participate in the bankruptcy proceedings, even as he managed his businesses, conducted financial transactions, and played tennis during winters in Florida.
His criminal contempt conviction stemmed from his violation of a court order prohibiting him from transferring assets from his 37 businesses. Authorities say he ignored the order, continued to move real estate, drained bank accounts, and stashed over $1 million in cash beneath the crawl space of his home.
Seidling’s sentencing also considered his lengthy criminal history, which includes a 1991 conviction for interference with commerce by threats and a 2009 conviction for 50 counts of mail fraud.
Chief U.S. District Judge James D. Peterson cited Seidling’s repeated abuse of the legal system to extort others as grounds for the stiff sentence, calling him a danger to reoffend.
Despite claiming he could not afford legal representation, Seidling was ordered to reimburse the U.S. Treasury after it was revealed he had concealed substantial assets.
No further details have been released at this time.
