73-year-old Hayward man convicted for bankruptcy fraud

A 73-year-old Hayward, Wisconsin man has been convicted for two counts of bankruptcy fraud and one count of criminal contempt of court. Bernard Seidling was convicted after a four-day trial on March 13.

Seidling filed for bankruptcy in 2022 and falsely claimed that he had no real estate, retirement accounts, trusts, partnerships, or business-related property and that he only had one deposit account totaling $195. An investigation determined that Seidling had four bank accounts in the names of trusts and a partnership with a combined balance of more than $3,000,000. Then, in 2023, a search warrant at Seidling’s Hayward residence allowed law enforcement to discover over $100,000 in cash and over $4,000,000 in uncashed cashier’s checks, most of which were drawn on business bank accounts but made payable to Seidling.

“Fraud threatens the free and fair markets upon which our economy is based. Moreover, fraud against the Court—in this case, the Bankruptcy Court—has the potential to undermine public trust in the fairness of the courts. This case reflects my office’s commitment to prosecuting financial crime and protecting the integrity of the bankruptcy system,” said U.S. Attorney Timothy O’Shea. “I am grateful for our partnership with the U.S. Trustee’s Office and I commend our federal and state law enforcement partners, the FBI, the Wisconsin Department of Justice, and the U.S. Postal Inspectors.”

The attorney’s office also stated the government proved Seidling defrauded the bankruptcy court and the bankruptcy trustee by falsely representing that he could not meaningfully participate in the bankruptcy case due to his physical and mental health.

Seidling’s sentencing is set for June 11, 2025. He faces a maximum penalty of five years in prison for each count of bankruptcy fraud and there is no maximum penalty for criminal contempt of court.