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Why Keeping Large Amounts of Money in Your Federal Prison Trust Fund is a Mistake. I explain why inmates shouldn’t keep large amounts of money in their federal prison trust fund accounts, despite it seeming like a safe place to store funds. I discuss how having significant money on your books can raise red flags with correctional staff, potentially leading the US attorney to seize those funds, especially if you owe court costs, restitution, or fines. I highlight the case of R. Kelly, whose nearly $28,000 was seized from his inmate account in 2022, as a cautionary example of how the government can take your money.

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White Collar Inmate In Federal Prison Gets Duped By The Government, Or Did He?

With information by Dale Chappell

We just has a client’s wife call us frantic over the holiday weekend. Her husband, a former Medical Doctor who is doing 72 months for “healthcare kickbacks” had around $7500 seized from his “Trust Fund Account” in federal prison, or his “books”. She wanted to know how in the world the government could do this to her husband after they’ve already been through so much.

For starters, The Court ordered this defendent to pay more than $11 million dollars in restitution. While many with healthcare or medicare fraud crimes don’t feel they have “victims” The United States Government is begs to differ. In their eyes, they are the victim.

Our friend and colleage Dale Chappell broke down why it’s very important to not keep a lot of money on your books in federal prison in this post on his website.

This comprehensive post examines 6 important things about keeping lots of money on your books including:

• What a BOP Trust Fund Account Really Is
• The Case Where The Government Took Everything
• Why The Financial Responsibility Program Won’t Save You
• Large Balances Attract Attention
• How Much Money is Enough
• The Bottom Line

R and B superstar R. Kelly had one of the most famous cases of keeping a large amount of money on his books and then having the government seize it. In September of 2022 the singer had nearly $28,000 seized from his trust fund account.

As Chappell expains here the trust fund account is not nearly the account most inmates think it is and they should only keep enough on their books for their essentials.

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