According to Mercury News a Yuba City doctor Arjinderpal Sekhon was indicted on seven counts related of bankruptcy fraud this month. His wife, Daljit Sekhon, also faces five counts bankruptcy fraud.

Prosecutors accuse the 59-year-old doctor and politician of transferring more than $1.5 million in property and income to his wife in an attempt to avoid paying debts. The transfers allegedly happened after Sekhon was ordered to pay $483,000 in restitution (later reduced to $175,000) after losing a sexual harassment lawsuit brought against him by a former employee. Despite the massive transfer, Sekhon filed bankruptcy in 2003 and claimed he only had assets of just over $26,000.

Both Arjinderpal and Daljit Sekhon deny the allegations.

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