Overview

• On Aug. 1, the Bankruptcy Court for the Southern District of Texas entered a default judgment denying Nathan Fuller a Chapter 7 discharge after he failed to respond to the U.S. Trustee Program’s complaint.
• The Justice Department publicly announced the judgment on Sept. 10, highlighting the program’s enforcement focus on debtors who abuse the bankruptcy system.
• Fuller admitted Privvy Investments LLC was run as a Ponzi scheme, acknowledged fabricating documents, and confessed to false testimony and falsified bankruptcy records after being held in civil contempt.
• Authorities said investor funds were diverted to luxury goods, gambling trips, and a nearly $1 million home for his ex-wife.
• Creditors may continue collections, while experts note trustees can deploy broad discovery, blockchain forensics, and cross-border tools to chase assets even as full recovery remains unlikely.