Abby Lee Miller pleaded not guilty to bankruptcy fraud charges against her when she appeared in U.S. District Court in Pittsburgh on Monday.
The 49-year-old "Dance Moms" reality star last month was indicted by a federal grand jury "on charges of bankruptcy fraud, concealment of bankruptcy assets and false bankruptcy declarations," according to Reuters. In 2010, Miller filed for bankruptcy to reorganize her studio Abby Lee Dance Co. in Pennsylvania.
Miller allegedly concealed $755,492.85 of income from 2012-2013. Reports say that the issue started when a bankruptcy judge happened to watch one of her spin-off shows in 2012 and doubted that she only earns $8,900 monthly. Miller's company exited bankruptcy in 2013.
ET Online reported that Miller requested for an extension for pre-trial motions, which the Magistrate judge approved, and requested a trial by jury. Miller's attorney, Robert Ridge, also confirmed that the dance instructor also posted $10,000 unsecured signature bond. This means that she is not required to pay any money as long as she shows up in court appearances.
U.S. Attorney David Hickton said in a statement that if found guilty, Miller is facing up to five years in prison, plus a $250,000 fine for each of the 20 counts against her.
In other news, Abby Lee Miller and Kelly Hyland finally settled their "Dance Moms" lawsuits last week in Los Angeles. TMZ reported that according to court documents, Kelly had agreed to drop her lawsuit filed against Abby and Collins Avenue Entertainment. As part of the agreement, Collins Avenue Entertainment will pay $17,500 to replace the floors in Kelly's home allegedly damaged during the show's production. They must also "keep a friendly front."
Abby Lee Miller began with "Dance Moms" in 2011 and then in three spin-offs "Abby's Ultimate Dance Competition," "Dance Moms: Miami" and "Dance Moms: Abby's Studio Rescue." The Lifetime reality show "Dance Moms" Season 6 is currently in production and is slated to be aired in 2016.
