Abby Lee Miller of 'Dance Moms' Indicted for Bankruptcy Fraud

by Alex Ungerman 12:47 PM PDT, October 14, 2015
Playing Abby Lee Miller of 'Dance Moms' Indicted for Bankruptcy Fraud

More legal troubles for Abby Lee Miller.

After assault charges against the Dance Moms star were dropped in July, Miller is facing an indictment from a federal grand jury on charges of bankruptcy fraud.

The indictment alleges that Miller lied about income she received from her Lifetime reality show, dance studio, and merchandise from 2012-2013 in order to restructure her debt more favorably. According to the allegations, the 49-year-old concealed $755,492.85 of income to gain more favorable terms.

Each count of the indictment against Miller carries a possible five years in federal prison, along with a $250,000 fine.

WATCH: Did Abby Lee Miller Just Say She's Quitting 'Dance Moms'?

"Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court," said U.S. Attorney David J. Hickton in a statement obtained by ET.

Internal Revenue Service Criminal Investigation Special Agent in Charge Akeia Conner echoed Hickton's sentiments, saying, "Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts the creditors and American taxpayers."

"The investigation of Abigale Lee Miller demonstrates our commitment to identify and prosecute those who commit bankruptcy fraud," said David McGinnis, of the U.S. Postal Inspection Service - Pittsburgh Division, about the charges.

WATCH: 'Dance Moms' Abby Lee Miller's Assault Charges Dropped

Meanwhile, in July of this year, Los Angeles Superior Court judge Ruth Ann Kwan ruled that there was insufficient evidence to prove the claims made by Paige Hyland that Miller hurled a chair at her. The suit, filed in 2014, alleged that the Dance Moms star was "paid to be abusive and bullying to her students. It also claimed that Miller "insulted and abused Paige on an almost daily basis, including cruel name calling, insults about Paige's physical appearance and making offensive false and defamatory accusation [sic.] about Paige's family."

Amid her legal battles, uncertainty surrounding Miller's future on the Lifetime series remains. In June, the dance instructor told ET that she wasn't sure if she'd return.

"Lifetime is a little in arrears on their payment plan with me personally, and so I think that will have to be taken care of first before we talk about season six," she said.

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"It's the kids that watch our show," Miller continued, arguing that the network focuses too much on moms fighting. "So I wish that the network would realize that, and the production company would back off the moms and the swearing and the fighting and all that, and let's concentrate on the dancing."

When ET reached out to Lifetime, the network had no comment regarding Miller. Meanwhile, Miller herself has yet to respond to ET's request for a comment.