A Calabasas-based real estate developer has been indicted in a bankruptcy fraud case that also alleges he laundered funds through shell companies in order to hide them from his creditors, according to a press release from the U.S. Attorney's Office for the Central District of California. Mark Handel was charged in a nine-count indictment unsealed on Friday with one count of making a false statement in a bankruptcy case, two counts of concealing assets belonging to a bankruptcy estate, one count of falsely testifying under oath at a bankruptcy proceeding, and five counts of money laundering. Handel’s arraignment is scheduled for February 16 in United States District Court in downtown Los Angeles. According to the indictment, Handel worked as a developer of commercial and residential real estate for more than 30 years. In April 2015, Handel filed a chapter 11 protection and subsequently made a series of false statements to avoid debts exceeding $10 million that he owed to creditors, including California Bank and Trust (CBT), the indictment alleges. The indictment further alleges that Handel formed multiple corporations and limited liability companies to conceal his income and his involvement in real estate development projects. Handel purposely failed to put his name on the corporations and entities in order to conceal and disguise his business activities and to deceive his creditors, the indictment alleges. Handel allegedly used his wife — who had no real estate business experience — and others as nominee partners, managers and owners of the LLCs that he in fact controlled.
