U.S. Attorney Tim Heaphy said he is forming a bankruptcy fraud task force with agents from the IRS and FBI, the day after federal agents arrested Roanoke businessman Roland "Spanky" Macher  on charges of bankruptcy fraud and tax evasion.

Heaphy, the U.S. attorney for Western Virginia, called a news conference today to warn cheaters: "Think twice. Be aware now that we're paying attention."

As many as 7,000 Western Virginia individuals and companies seek bankruptcy protection from creditors each year, Heaphy said. An untold number lie to bankruptcy court to hang onto assets that otherwise would be sold to pay debts, he said.

"Bankruptcy fraud is a serious offense that has serious consequences for those who commit this crime," Heaphy said.

Macher, owner of Roanoke and Hilton Head, S.C., rental properties, a string of restaurants and a parking lot near the Taubman art museum from which he towed parking violators, faces a maximum of 25 years in prison and $1.1 million in fines if convicted.

Macher filed for bankruptcy in 2000 after authorities said he was assessed $277,763 for unpaid business taxes. A federal grand jury accused him of misrepresenting the amount of equity he controlled in his Roanoke rental properties, which led the court to believe the assets were worth less than their value. He also failed to tell the court about three rental properties he owned in Hilton Head, and failed to disclose his financial stake in Spanky's Express and Spanky's of Morgantown, according to the indictment.

Macher took cash-out mortgages on his Roanoke properties and sold the South Carolina properties, contradicting his sworn statements to bankruptcy court. Through all these acts, he misled his largest creditor, the IRS, said Heaphy.