'Dance Moms' Star Abby Lee Miller Indicted for Fraud

The reality star has been accused of lying about her income and hiding assets.

October 14, 2015, 12:12 PM

— -- Abby Lee Miller is in legal trouble.

The "Dance Moms" star has been indicted for fraud, according to the United States Attorney's Office.

“Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court,” said U.S. Attorney David J. Hickton in a statement.

According to the 20-count indictment, Miller, 50, filed a petition to reorganize her dance studio in 2010, and then allegedly devised a plan to defraud the bankruptcy court by lying about money she earned from her TV deals and Masterclass studio sessions and apparel and merchandise sales between 2012 and 2013. The indictment also alleges that Miller secretly created bank accounts to hide that income, which totaled more than $755,000 and, as a result, gained better terms to restructure her debt.

“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt resulting from any number of legitimate reasons, but allegations of fraud and abuse threaten the integrity of the bankruptcy process and the public’s trust in it," said Scott S. Smith of the Federal Bureau of Investigation’s Pittsburgh Division. "We take our responsibility to pursue allegations of bankruptcy fraud seriously."

If convicted, Miller faces up to five years in prison and a fine of $250,000 for each count of the indictment. A rep for "Dance Moms" has not yet responded to a request for comment.

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