What would you like to know?
Share this Story

Dance Moms' Abby Lee Miller's reported bankruptcy fraud could land her in jail

A celebrity gossip junky, Caroline Goddard has been writing entertainment news for longer than the world has known Kim Kardashian's name. Follow her on Twitter at @GoddardCaroline.

Dance Moms' Abby Lee Miller is in big trouble with the feds for hiding a major amount of cash

Dance Moms head Abby Lee Miller is about to learn if her popular reality show is a hit with the prison population — by possibly starring in her own real-life Orange Is the New Black.

Miller has been indicted on bankruptcy fraud charges, and if convicted could face five years in prison plus huge fines totaling a possible $5 million.

A statement from the U.S. Attorney’s Office revealed that Miller is facing 20 counts related to concealment of bankruptcy assets and false bankruptcy declarations, including hiding income from her popular TV show as well as spinoff shows, merchandise sales and Masterclass dance sessions in 2012 and 2013, after filing bankruptcy in December 2010.

More: Dance Moms drama: Man arrested for sending "pornographic packages" to minor

According to the indictment, Miller created secret bank accounts specifically to hide a total of $755,492.85 and made false declarations in monthly operating reports.

Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts the creditors and American taxpayers,” said Internal Revenue Service Criminal Investigation special agent in charge Akeia Conner. “Concealing assets from the court and not paying taxes is a gross violation of civic duty, and IRS Criminal Investigation will work diligently with our law enforcement partners to pursue those who do so.”

More: Dance Moms' Abby Lee has a bomb scare at the studio

Added acting inspector in charge David McGinnis of the U.S. Postal Inspection Service – Pittsburgh Division, “The investigation of Abigale Lee Miller demonstrates our commitment to identify and prosecute those who commit bankruptcy fraud.”

If she does go to jail, at least Miller already has a killer dance routine ready to entertain her fellow inmates.

So far, Miller has not commented on her legal woes.

More: Dance Moms' Abby Lee hit an all-time low encouraging shameful behavior

New in Entertainment

And you'll see personalized content just for you whenever you click the My Feed .

SheKnows is making some changes!