Abby Lee Miller is possibly looking at a federal indictment after having allegedly hid about $750 grand of income in 2010, before filing for bankruptcy.
The 49-year-old 'Dance Moms' star was indicted Tuesday by a Pittsburgh grand jury. Abby Lee Miller is alleged to have hidden more than $755,000 in earnings from the Lifetime reality series produced by Collins Avenue Production and related businesses from the courts and the taxman.
Abby Lee Miller, who is known for her outrageous personality and controversial teaching methods on the reality show, faces 20 counts of fraud, concealing assets and making false bankruptcy declarations.
If Abby is convicted, she could face up to five years in prison, as well as a fine of $250,000.
Abby filed for bankruptcy in December 2010 which lasted for three years. During that time, prosecutors claim she hid income from her TV appearances, dance classes and merchandise sales.
The indictment also alleges that Abby had falsified the financial reports from her dance studio, and had completely neglected to report part of her income, according to TMZ.
In her original bankruptcy plan, the reality star had admitted she receiving partial income from the reality show but claimed she never had a contract. Prosecutors now claim this was false.
A federal bankruptcy judge had been ready to approve the plan when he spotted Miller while channel surfing one evening.
Judge Thomas Agresti saw Miller's Ultimate Dance Competition, as well as her appearance on American Idol and her teaser ad for the third season of Dance Moms.
Prosecutors say that none of the contracts for the shows had appeared in the bankruptcy plan.
The judge called a new hearing in February 2013 where he urged Miller to disclose all her earnings. But Miller continued to hide income, prosecutors said.
Abby Lee Miller grew up around dance. Her mother ran her own dance school, and was a member of Dance Masters of America that started Abby Lee Miller's net worth.
She took dance classes, along with music lessons, figure skating, and art classes, and ultimately fell in love with teaching, as she never enjoyed performing.
She claims she has been coaching children to dance since she founded her dance company when she as just 14 that helped Abby Lee Miller's net worth to grow.
Her star student, 13-year-old Maddie Ziegler, has found worldwide fame thanks to her emotional performance in Aussie singer Sia's 'Chandelier' music video that catapulted her to stardom and skyrocketed Abby Lee Miller's net worth.
Currently, Abby Lee Miller's net worth is $2 million according to Celebrity Net Worth.
