Associated Press - November 3, 2009 7:44 AM ET

BOISE, Idaho (AP) - A Meridian man has pleaded guilty in federal court to defrauding creditors and a court-appointed trustee during his 2004 bankruptcy case.

Reed J. Bowen Jr., 50, pleaded guilty Monday in U.S. District Court in Boise to one count of bankruptcy fraud. Bowen was accused of failing to disclose a real estate contract granting him an exclusive right to buy his Meridian home at a fixed price. He initially stated he only had a lease on the house.

Prosecutors say Bowen then bought the home after settling his bankruptcy case.

They also say he inflated the mortgages on a cabin he owned in McCall, and consequently misled the court about his equity in the property.

Sentencing is set for Jan. 19, 2010. He faces a maximum of 5 years in prison and fines up to $250,000.

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