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Dance Moms' Abby Lee Miller responds to $5 million fraud case

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 has her first day in court for bankruptcy fraud

Abby Lee Miller will get her day in court — and if she has anything to say about it, she will be dancing her way to freedom.

Miller, the controversial star of the hit reality show Dance Moms, pleaded not guilty to bankruptcy fraud during a short arraignment in a Pittsburgh federal courthouse after paying a $10,000 bond. She was indicted on 20 counts of bankruptcy fraud, concealment of bankruptcy assets and false bankruptcy declarations, and could face prison time and $5 million in fines. Her legal team also submitted a request for an additional 45 days to submit pre-trial motions because they claim they have not received necessary documents from the prosecution.

“By the time of the filing of this Motion, Ms. Miller had not received any material from the Government,” the motion for extension claims.

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

In addition to other transgressions, the feds are accusing Miller of hiding over $755,000 in earnings from Dance Moms by having payments made to her mother instead of her after filing for bankruptcy in 2010.

"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 in a statement about the case. "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 drama: Man arrested for sending "pornographic packages" to minor

Upon entering the courthouse, when Miller was asked by waiting press if she took the charges seriously, she said, "Yes." But it sure didn't sound like like it when she later added, "I didn't have my hair done," she told reporters. "Season 6 jackets are on sale on the website Wednesday."

If convicted, she faces up to five years in federal prison and a fine of $250,000 for each count, totaling $5 million.

More: Fans are upset that Dance Moms leader Abby Lee Miller may abandon her team

Dance Moms' Abby Lee Miller has her first day in court for bankruptcy fraud

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