'Dance Moms' star Abby Lee Miller pleads not guilty to fraud

Mon Nov 2, 2015 6:09pm EST
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By Elizabeth Daley

PITTSBURGH, Pa. (Reuters) - Reality television show star Abby Lee Miller pleaded not guilty on Monday to concealing over $755,000 in income that U.S. investigators say she earned from Lifetime network's "Dance Moms" and spinoff projects during her Chapter 11 bankruptcy.

Miller, 50, who appeared in U.S. District Court in Pittsburgh, was indicted by a federal grand jury last month on charges of bankruptcy fraud, concealment of bankruptcy assets and false bankruptcy declarations.

If convicted, Miller faces up to five years in prison and a $250,000 fine for each of the 20 counts against her, U.S. Attorney David Hickton said in a statement.

Miller had filed for bankruptcy in December 2010 to reorganize her dance studio, Abby Lee Dance Co in the western Pennsylvania municipality of Penn Hills. She is accused of scheming to defraud the bankruptcy court by concealing income she earned in 2012 and 2013, that was deposited into undisclosed bank accounts.

Miller, whose company exited bankruptcy in 2013, denies that she knowingly concealed income.

"Let's hope they get the numbers of the expenses that went out," she said when asked if she had any comments on the case. 

"Dance Moms," which is filming its sixth season, follows the lives of competitive young Pittsburgh-area dancers and highlights tensions between Miller and their parents.

Questions about the accused fraudulent activity were first raised after a bankruptcy judge happened to watch one of Miller's spin-off shows and doubted her claim that she was cash-strapped, the indictment said.   Continued...

Reality TV show star Abby Lee Miller leaves at the federal courthouse after pleading not guilty to federal charges in Pittsburgh, Pennsylvania November 2, 2015.   REUTERS/Elizabeth Daley