Yuba City doctor Arjinderpal (A.J.) Sekhon and his wife, dentist Daljit Sekhon, pleaded not guilty Friday to bankruptcy fraud charges in U.S. District Court in Sacramento.

The Sekhons were released on their own recognizance after surrendering their passports and requesting a jury trial. Their next scheduled court date is Dec. 12.

The Sekhons were released without bail because they are not a flight risk, said Arjinderpal Sekhon's attorney, Johnny Griffin.

Daljit Sekhon will retain her own attorney, according to court minutes.

A call to a cell phone number listed for Arjinderpal Sekhon's congressional campaign this year was answered by a man identifying himself as Sekhon's son. He referred questions to Griffin.

In earlier comments to the Redding Record Searchlight, Arjinderpal Sekhon said the U.S. Attorney's Office is trying to "save their face" by filing the charges, which he called unfounded. He questioned why his wife was charged when he, not she, filed for bankruptcy.

Griffin said Sekhon made the comments before consulting him.

According to the eight-count indictment, the Sekhons transferred $1.5 million in property they both owned to Daljit Sekhon alone after a Sutter County jury on Sept. 23, 1998, awarded $483,000 to Shobhana Sharma, a former employee of Arjinderpal Sekhon who sued him for sexual harassment. An arbitrator eventually reduced damages to $175,000 in the Sharma civil suit.

The indictment states that the Sekhons recorded a post-nuptial agreement within two hours after the jury verdict that, among other things, purported to change community property owned by the Sekhons to the sole ownership of Daljit Sekhon.

The indictment also states that four properties were transferred to the sole ownership of Daljit Sekhon between 1998 and 2003.

Arjinderpal Sekhon is charged with concealing the property when he filed for bankruptcy in 2003, claiming he had assets of $26,185 and debts of $1,093,700.

Charges against Daljit Sekhon include fraudulent transfer of property.

Arjinderpal Sekhon was a candidate in the Democratic primary in June for the 2nd District Congressional seat held by Republican Wally Herger, R-Chico. Sekhon narrowly lost the nomination to Jeff Morris.

Sekhon, a colonel in the U.S. Army reserve, won the primary in 2006 but lost to Herger in the general election.

Contact Appeal-Democrat reporter Rob Young at 749-4710 or at ryoung@appealdemocrat.com.