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Woman sentenced to serve 27 months in prison, pay restitution in fraud case

June 26, 2013

A Bethesda, Md., woman whose Washington County home was involved in a bankruptcy fraud case was sentenced last month to serve 27 months in prison, according to the U.S. Attorney’s Office for the District of Maryland.

Diana J. Stout, 56, also was ordered by U.S. District Judge J. Frederick Motz in Baltimore to pay $155,747.83 in restitution, according to a news release from the federal prosecutor’s office.

The sentencing took place May 21.

In November 2010, Stout filed an insurance claim seeking reimbursement for repairs to a home she owned at 11034 Sani Lane near Hagerstown, the release said.

Officials said she failed to notify the Chapter 7 trustee that she made the claim and kept the money for her own use.

The insurance proceeds were in excess of $18,000, according to court records.

Officials said Stout also failed to disclose that she owned a diamond bracelet, shares of stock and other items.

Stout pleaded guilty in December 2012 to making a false statement in bankruptcy and concealment of assets in connection with her Chapter 7 case, according to the U.S. Department of Justice.

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