May 23, 2018
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Baileyville man gets one year for bankruptcy fraud

By Dawn Gagnon, BDN Staff

BANGOR, Maine — A former police officer from Baileyville was sentenced Tuesday to one year and one day in prison for bankruptcy fraud in U.S. District Court in Bangor.

George Rayner, 69, also was ordered to undergo one year of supervised release upon completion of his sentence during his sentencing hearing.

A jury found Rayner guilty of the offense on Dec. 7 of last year, U.S. Attorney Thomas Delahanty II announced in a news release. Chief Justice John Woodcock presided at the sentencing hearing.

According to evidence introduced at trial, Rayner and his wife filed for bankruptcy reorganization in May 2006.

In his bankruptcy filings and testimony, Rayner concealed from the Office of the U.S. Trustee and his creditors:

• A bank account at The First NA, formerly known as the First National Bank of Bar Harbor;

• A deferred compensation retirement account from his employment as a police officer for the town of Baileyville worth $150,000 at that time;

• His entitlement to reimbursement for accrued but unused sick leave and vacation time benefits.

Rayner also failed to include in monthly operating reports he was required to file with the Office of the U.S. Trustee a $97,000 lump-sum distribution from his retirement account and the payment of about $12,000 in unused benefits from the town of Baileyville.

According to the Bangor Daily News archives, Rayner’s criminal history includes a $250 fine for violating fuel tax licensing or reporting in 2006, a $100 fine for a rule violation involving an inadequate suspension in 2007 and a $1,000 fine in 2009 for two counts of issuing substandard inspection stickers.

The investigation that led to Rayner’s conviction on bankruptcy fraud was conducted by the Federal Bureau of Investigation and the Internal Revenue Service’s Criminal Investigation Division, with assistance from the Office of the U.S. Trustee.

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