By SDCN Staff
The U.S. Trustee Program (USTP) Monday recently obtained a judgment denying a bankruptcy discharge to a door-to-door salesman who concealed his business interests and lied in his bankruptcy case to evade his creditors, including women and older adults whom he defrauded.
On April 18, the Bankruptcy Court for the District of Oregon entered a default judgment denying a discharge to Chapter 7 debtor Jason Gillis. Gillis — who sold vacuums, air filters, and related products — crafted fraudulent schemes generally targeting women he pursued as romantic partners and their elderly parents. In one such scheme, he solicited investments in his businesses but used the money primarily for personal expenses. His victims included a 79-year-old woman recovering from a stroke. In addition to running up debts using the identities of the woman and her daughter without their knowledge or consent, Gillis arranged for the older woman to take out a mortgage on her home, purportedly under duress. In total, he persuaded her to transfer more than $100,000 to a business bank account that he controlled, then diverted a significant amount of the funds to pay for personal expenses.
Gillis also used some of those funds to lease a recreational vehicle valued at about $150,000 from another woman in her seventies, whose daughter he briefly dated. After taking possession of the RV, which he then lived in, Gillis stopped making lease payments and refused to disclose the vehicle’s location.
Gillis filed a Chapter 7 bankruptcy petition in August 2024 amid several lawsuits and judgments based on claims of breach of contract, fraud, and theft by deception. An investigation by the USTP’s Portland office revealed that to avoid collection efforts, Gillis concealed his interests in several businesses by transferring nominal ownership to victims while he retained full control and by forging signatures on forms filed with the Oregon Secretary of State. He also made several false statements in his bankruptcy case about his assets and financial affairs, including his multiple business interests; the transfers of nominal ownership; deposits to undisclosed financial accounts; and a wrongful death settlement related to his mother’s estate.
Gillis did not respond to or defend against the USTP’s complaint to deny his bankruptcy discharge, leading to a default judgment in the USTP’s favor. As a result, Gillis remains personally liable for his debts — including more than $1.7 million in unsecured debts listed in his bankruptcy schedules — and creditors may continue collections on claims against him.
“Bankruptcy is not a safe haven for fraudsters,” said Acting U.S. Trustee Jonas V. Anderson for Region 18, which includes the District of Oregon. “The U.S. Trustee Program, as the watchdog of the bankruptcy system, is committed to rooting out deceptive schemes that harm innocent victims.”
One of the USTP’s core functions is to combat bankruptcy fraud and abuse through civil enforcement actions against debtors who engage in fraud or otherwise abuse the bankruptcy system. When circumstances warrant, the USTP takes action to deny those debtors a discharge. Generally, under the Bankruptcy Code, debtors are not entitled to a discharge if they conceal property with intent to hinder, delay, or defraud a creditor or an officer of the bankruptcy estate, such as the private trustee administering the estate. The Code also prevents a discharge if the debtor knowingly and fraudulently made a false oath or account in or in connection with the bankruptcy case.
