Bernard Seidling, a 74-year-old resident of Hayward, Wisconsin, has been sentenced to seven years in federal prison for bankruptcy fraud and criminal contempt of court. Chief U.S. District Judge James D. Peterson also imposed a $500,000 fine on Seidling following his conviction by a jury after a four-day trial in Madison.
U.S. Attorney O’Shea described Seidling as “a recurring and shameless financial predator,” expressing gratitude to the prosecutors and various partners involved in the case, including the U.S. Trustee’s Office, the FBI, the Wisconsin Department of Justice – Division of Criminal Investigations, and the U.S. Postal Inspectors.
FBI Milwaukee Special Agent in Charge Michael Hensle commented on the sentence as reflecting “the FBI’s commitment to ensuring public trust by pursuing individuals who defraud others for personal gain.”
Seidling filed for bankruptcy in 2022 but misrepresented his financial status by claiming he had minimal assets when he actually controlled approximately $20 million hidden through sham trusts and partnerships. His filings falsely stated no real estate sales within two years despite selling a property in Key West for over $3 million in 2021.
The bankruptcy court converted his case from reorganization to liquidation over Seidling’s objections. He then claimed health issues prevented him from participating meaningfully but continued managing businesses and playing tennis during this period.
Seidling violated a court order prohibiting asset transfers related to his businesses during bankruptcy proceedings by transferring real estate and draining bank accounts. He concealed over $1 million cash under his house and used another person to transfer property.
Judge Peterson cited multiple reasons for exceeding sentencing guidelines, noting Seidling’s systematic dishonesty and refusal to accept responsibility. The judge highlighted prior convictions from 1991 for interference with commerce by threats or violence and 2009 for mail fraud involving small claims courts as indicative of potential reoffending risk.
Throughout legal proceedings, Seidling was represented at public expense based on false indigency claims according to Judge Peterson who ordered reimbursement of defense costs to the U.S Treasury.
The investigation was conducted by the FBI, Wisconsin Department of Justice Division of Criminal Investigation, United States Postal Inspection Service with assistance from the Office of United States Trustee while Assistant U.S Attorneys Meredith P Duchemin and Megan R Stelljes prosecuted the case.
