Right, which is why trying to hide the fact you testified might be a bad idea... If someone won't hire you because you testified against a criminal employer... You probably don't want to work for them. Since, as you said, companies hide their true colors, this way you can know before being hired.
On the other hand, many times hiring managers are just looking for a reason to discard your resume to narrow down the talent pool. Anything negative gets you tossed. They see this. Maybe it's a good sign, maybe it's a bad sign. Either way it's something out of the ordinary that will take more time to evaluate. Better just toss the resume. There's still another stack of 100 candidates to go through...
My reading of “your house is not an asset” is “Robert Kiyosaki apparently failed Introduction to Accounting because he still doesn’t know the definitions of basic accounting terms.” (Except in very rare cases, like when the verdict against you for the neighbor kid drowning in your pool is more than your house will sell for.)
Mortgage, kids... Sometimes you need a paycheck.