Abby Lee Miller Reveals Bankruptcy Fraud Charges on ‘Dance Moms’

Abby Lee Miller may be facing up to 5 years of jail time in addition to a $250,000 fine, according to TMZ, as she is facing 20 counts of fraud, hiding assets and making false bankruptcy declarations. Celebrity Net Worth reports Miller having a net worth of approximately $2 million, but in 2010, she filed for bankruptcy. Miller allegedly hid $755,000 in 2010 before she filed for bankruptcy and she was indicted by a Pittsburgh grand jury in October 2015. Her situation is said to play out on her reality television show Dance Moms.

Miller’s bankruptcy lasted for about three years and prosecutors claim she concealed income from her TV appearances, dance classes and merchandise sales during that time. Plus, the indictment claims that Miller falsified the financial reports from her dance studio, and did not report part of her income.

In her original bankruptcy plan, Miller admitted she receiving partial income from the reality show but said that she never had a contract. Prosecutors believe this was untrue.

Federal bankruptcy Judge Thomas Agresti was set to approve Miller’s bankruptcy plan when he saw Miller’s Ultimate Dance Competition, her appearance on Dancing With the Stars and a promo for the third season of Dance Moms, according to Food World News. None of these show contracts appeared in the bankruptcy plan. As a result, the judge called another hearing in February 2013 where he ordered Miller to disclose all her earnings. Unfortunately, prosecutors say that Miller continued to hide portions of her income.