Bad Boys of Bankruptcy: Season 2, Episode 3: Fraud, Identity Theft, and the Battle Over Unclaimed Money

In this special public service episode, Judge Elizabeth Gunn is joined by Rebecca A. Earl and Dana McWay to explore a growing and often overlooked corner of bankruptcy fraud: the exploitation of unclaimed funds. With over half a billion dollars currently held in unclaimed distributions, the system has become a target for fraudsters employing everything from falsified assignments to identity theft and wire fraud to steal from legitimate creditors.

The episode unpacks the legitimate process for recovering unclaimed funds and how bad actors have learned to exploit it. From fund locators—some legitimate, some not—to individuals impersonating creditors or creating companies with identical names to the true payees, the guests reveal just how elaborate these schemes have become.

This cautionary tale doesn’t follow one fraudster—it shines a spotlight on a systemic vulnerability, offering insight into what courts and clerks are doing to protect the system.

Tune in to hear how the courts are fighting back against this wave of bankruptcy fraud.