MARION, Iowa (KCRG) – A former president of a now-defunct Marion business was convicted of multiple federal bankruptcy crimes Monday after court documents show he concealed assets and provided false statements during his bankruptcy proceedings.
51-year-old Dennis Bruce, of Marion, was found guilty of one count of conspiracy, two counts of bankruptcy concealment, one count of false bankruptcy declaration, two counts of false statement under oath, and one count of engaging in a monetary transaction in property derived from specified unlawful activity.
Court documents say Bruce was the owner and president of BDC Group, Inc., a now-defunct Eastern Iowa telecommunications infrastructure company that operated nationally.
In 2023, BDC Group filed for Chapter 11 bankruptcy in an attempt to reorganize. In 2024, a bankruptcy court converted the case to a Chapter 7 liquidation. That same year, Bruce filed for personal Chapter 7 bankruptcy protection, claiming he had less than $50,000 in non-exempt assets. He was seeking to discharge more than $30 million in debt, most of it being personal guarantees on company loans.
U.S. bankruptcy law provides honest debtors a “fresh start” through debt discharge, only if they are completely truthful with the court, trustees, and creditors.
According to court documents, Bruce made false statements about his property and prior financial transfers. The concealment involved the sale of a $50,000 pontoon boat and his ownership interest in an Eastern Iowa conduit company.
Court documents also show Bruce hid ownership interest in a Marion limited liability company, registered in another person’s name and allegedly run out of Bruce’s basement. Bruce secured approximately $300,000 in seed capital for the company and maintained a share of its profits.
That company solicited business from former BDC Group clients, including NASA, by falsely presenting itself as a “woman-owned” business. It secured a NASA contract worth nearly $500,000 to construct a blast-proof bunker at Johnson Space Center in Houston, Texas.
While his personal bankruptcy was pending, Bruce and another individual received payments from the new company, including “rent,” dental work, and a home office desk. Court documents show the company’s internal financial records were falsified to conceal those payments.
A sentencing date has not been set. Bruce faces a maximum sentence of 40 years in federal prison, a $1,750,000 fine, and three years of supervised release.
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