<h2>President of Maryland Tax and Financial Management Companies Pleads Guilty to Defrauding a Client of at Least $526,000</h2>
<p><strong><em>Baltimore, </em></strong>Maryland – Paul Randolph Beeks, Jr., age 58, of Mt. Airy, Maryland, pleaded guilty today to wire fraud arising from a scheme to defraud one of his clients of at least $526,000.</p>
<p>The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.</p>
<p>According to his plea agreement, from January 2008 to the present, Beeks was the President of various Maryland tax and <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="615">financial</a> management companies including PRB Tax &; Accounting Services, Inc. (hereafter “PRB”) and Elite Financial Services, LLC (hereafter “Elite Financial”). In 2008, at the request of the physician who owned and operated Mid Atlantic Radiology Services, LLC (MARS), Beeks incorporated MARS in Maryland, and was entrusted with all of MARS’ accounting, tax, and financial responsibilities. Beeks also conducted payroll on behalf of MARS, paid MARS’ vendors and paid malpractice insurance for MARS’ physicians.</p>
<p>Starting in November 2009 and continuing to August 2015, Beeks, in his capacity as MARS’ accountant and financial planner, caused approximately 24 wire transfers from MARS accounts to bank accounts associated with Beeks’ various companies. In order to disguise the theft of funds, Beeks falsely claimed that some of these wire transfers were for management fees and bonuses. However, no management fees or bonuses were authorized by any MARS representative and the remaining wire transfers were not for legitimate purposes.</p>
<p>As part of his plea agreement, Beeks will be required to forfeit all property involved in the offense, including, but not limited to a money judgment of at least $336,077.</p>
<p>Beeks faces a maximum sentence of 20 years in prison for the conspiracy. U.S. District Judge George L. Russell III has scheduled Beeks’ sentencing for January 19, 2017, at 9:30 a.m.</p>
<p>Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit <a href="http://www.stopfraud.gov/"><u>www.StopFraud.gov</u></a>.</p>
<p>United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Philip A. Selden, who is prosecuting the case.</p>
<p><a href="https://www.justice.gov/usao-md/pr/president-maryland-tax-and-financial-management-companies-pleads-guilty-defrauding-client">Original PressReleases&#8230;</a></p>

Category Archives: Fraud News From World
A “Fraud News From World” directory is a collection of news articles about fraud and scams from around the world. These directories can be a valuable resource for staying informed about the latest scams and how to protect yourself from them. The directory typically includes information about the scam, such as the type of scam, the target audience, the location of the scam, and the date of the scam. It may also include information about how to protect yourself from the scam, such as how to identify a phishing email or how to report a scam to the authorities.
Financial Fraud: Kevin C. Conklin Charges of Wire Fraud, Mail Fraud and Income Tax Evasion
<h2>Energy Company Employee Indicted on Fraud and Tax Charges</h2>
<p>PITTSBURGH – A resident of Waynesburg, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, mail fraud, impeding and obstructing the Internal Revenue Laws, and income tax evasion, United States Attorney David J. Hickton announced today.</p>
<p>The seven-count indictment, returned on October 4, named Kevin C. Conklin, 54, as the sole defendant.</p>
<p>According to the Indictment, Conklin was employed by Mountain Energy Company, Ltd., an energy company headquartered in Aleppo Pennsylvania that operated oil and natural gas wells in the Western District of Pennsylvania. As part of his employment, Conklin oversaw the day-to-day operations of Mountain Energy and managed the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="614">financial</a> matters of Mountain Energy.</p>
<p>From January 2008 through December 2012, Conklin engaged in a scheme to defraud Mountain Energy and fraudulently obtained hundreds of thousands of dollars of Mountain Energy’s funds. As part of the fraudulent scheme, Conklin used checks drawn on Mountain Energy’s business bank account to pay for personal expenses, including payments for Conklin&#8217; s home, personal credit card bills, college tuition for his daughter, an engagement ring for his son and automobile payments for a personal vehicle. Conklin falsely recorded in the financial database of Mountain Energy, the payee information and purpose of the Mountain Energy’s checks used by Conklin for his personal expenses. As part of the scheme, Conklin concealed from Mountain Energy’s tax preparer and the Internal Revenue Service, the expenditure of Mountain Energy’s funds to pay for his personal expenses.</p>
<p>Conklin faces a maximum sentence of 20 years imprisonment and a fine of $250,000 for each of the two counts charging him with wire fraud and mail fraud, a maximum sentence of three years imprisonment and a fine of $250,000 for the count charging him with impeding and obstructing the Internal Revenue Service, and a maximum sentence of five years imprisonment and a fine of $250,000 for each of the four counts charging him with income tax evasion. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.</p>
<p>Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.</p>
<p>The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, conducted the investigation leading to the indictment in this case.</p>
<p>An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.</p>
<p> ;</p>

Healthcare Fraud: Michael A. Tucker Sentenced For Health Care Fraud Scheme
<h2>Springfield Man Sentenced for Fraud Scheme to Overcharge Medicaid, Medicare at Four Clinics</h2>
<p>KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Missouri Attorney General Chris Koster announced that a Springfield, Mo., man who operated four Family Medical Center clinics in southern Missouri was sentenced in federal court today for health care fraud.</p>
<p>Michael A. Tucker, 47, of Springfield, was sentenced by U.S. District Judge Gary A. Fenner to one year and one day in federal prison. The court also ordered Tucker to pay $54,273 in restitution.</p>
<p>On March 30, 2016, Tucker pleaded guilty to health care fraud. Tucker was the owner of four Family Medical Center clinics in Carthage, Mo., Branson, Mo., Nevada, Mo., and Lamar, Mo. In June 2015, Tucker closed his clinics and Family Medical Centers ceased doing business.</p>
<p>Tucker admitted that he defrauded Medicaid and Medicare by submitting claims to the government for more expensive treatment than was provided at his clinics. Although the physicians and nurse practitioners at Tucker’s clinics accurately recorded the services they provided, Tucker billed Medicaid and Medicare for more expensive services. The Medicaid scheme lasted from Jan. 1 to June 30, 2014. The Medicare scheme lasted from April 15, 2013, to Sept. 24, 2014.</p>
<p>Specifically, Tucker routinely billed Medicaid for more complex office visits than were actually provided. In addition, Tucker routinely billed both Medicaid and Medicare for the services of physicians when the patient had actually been seen by a nurse practitioner. Lastly, Tucker billed Medicaid for physician office visits when only laboratory services had been provided. In each of these instances Tucker’s conduct resulted in his clinics receiving greater reimbursement than they were entitled to from Medicaid and Medicare.</p>
<p>The Missouri Attorney General’s Medicaid Fraud Control Division led the initial investigation into Tucker’s conduct and then assisted the United States Attorney’s Office, Western District of Missouri and the Office of the Inspector General for the United States Department of Health and Human Services in Tucker’s prosecution.</p>
<p>This case was prosecuted by Assistant U.S. Attorney Cindi Woolery. It was investigated by the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office and the Department of Health and Human Services, Office of Inspector General.</p>
<p><a href="https://www.justice.gov/usao-wdmo/pr/springfield-man-sentenced-fraud-scheme-overcharge-medicaid-medicare-four-clinics">Original PressReleases&#8230;</a></p>

Financial Fraud: A lender headquartered, Resolve Allegations That it Violated the False Claims Act by Originating and Underwriting Mortgage Loans Insured
<h2>Utah-Based Lender Agrees To Pay $4.25 Million To Resolve Alleged False Claims Act Liability Arising From FHA-Insured Mortgage Lending</h2>
<p>NEWARK, N.J. – A lender headquartered in Salt Lake City, Utah, has agreed to pay $4.25 million to resolve allegations that it violated the False Claims Act by originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, U.S. Attorney Paul J. Fishman and the U.S. Department of Justice announced today.</p>
<p>As part of the settlement agreement, SecurityNational Mortgage Co. (SecurityNational) admitted it certified loans for FHA mortgage insurance that did not meet HUD underwriting requirements regarding borrower creditworthiness and eligibility.</p>
<p>Since at least January 2006, SecurityNational has participated as a Direct Endorsement Lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/mortgage/" title="mortgage" data-wpil-keyword-link="linked" data-wpil-monitor-id="70">mortgage</a> loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/loans/" title="loan" data-wpil-keyword-link="linked" data-wpil-monitor-id="224">loan</a> before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.</p>
<p>“HUD relies on the Direct Endorsement Lenders like SecurityNational to make sure their loans are made only after a rigorous and thorough review,” U.S. Attorney Fishman said. “In this case, SecurityNational has admitted it approved loans that it had no business endorsing, potentially damaging a vital FHA program and other potential borrowers.”</p>
<p>“The FHA program provides important economic support for homeownership and community development,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said. “The Department has and will continue to ensure that program participants adhere to applicable requirements, and will pursue those that knowingly misuse the program for their own gain and to the detriment of homeowners and the public.”</p>
<p>SecurityNational admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:</p>
<ul>
<li>the borrower was delinquent on federal debt and had an unpaid court-ordered judgment;</li>
<li>the borrower was four months delinquent on the underlying mortgage SecurityNational refinanced into an FHA loan;</li>
<li>the mortgage loan amount exceeded HUD’s loan to value requirements;</li>
<li>SecurityNational failed to document income used to qualify the borrower for FHA mortgage insurance; and</li>
<li>SecurityNational failed to analyze the borrower’s delinquent credit history.</li>
</ul>
<p>As a result of SecurityNational’s conduct and omissions, HUD insured loans endorsed by each lender that were not eligible for FHA mortgage insurance under the DEL program, and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.</p>
<p>“Today’s settlements resolve allegations that these lenders, entrusted by American taxpayers to abide by FHA rules, failed to comply with certain FHA origination, underwriting and quality control requirements,” Inspector General David A. Montoya for HUD said. “The settlements demonstrate a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”</p>
<p>The settlement with SecurityNational is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the District of New Jersey. The government is represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division of the U.S. Attorney’s Office for the District of New Jersey. A similar settlement in a case investigated by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the District of Colorado, was also announced today.</p>
<p>The claims asserted against SecurityNational are allegations only, and there has been no determination of liability.</p>
<p><a href="https://www.justice.gov/usao-nj/pr/utah-based-lender-agrees-pay-425-million-resolve-alleged-false-claims-act-liability">Original PressReleases&#8230; </a></p>

Financial Fraud: Naum Morgovsky Arraigned For Scheme to Defraud Two Federally-Insured Banks
<h2>Portola Valley And Hillsborough Residents Charged In Bank Fraud Scheme</h2>
<p>SAN FRANCISCO – Naum Morgovsky was arraigned in federal court today for his alleged role in a scheme to defraud two federally-insured banks through short sales of two rental properties in Hawaii, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The arraignment took place in San Francisco before the Honorable Sallie Kim, U.S. Magistrate Judge, and follows an indictment handed down by a federal grand jury on September 29, 2016, charging Morgovsky and his co-defendant, Mark Migdal, with conspiring to commit the alleged crimes.</p>
<p>According to the indictment, between June 2009 and July 2016, Morgovsky, 67, of Hillsborough, and Migdal, 71, of Portola Valley, conspired to defraud two federally-insured banks, now Bank of America and EverBank, by seeking the banks’ approval for short sales of two condominiums. A short sale is a sale in which a lender allows a property to be sold at a price less than the amount owed on the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/loans/" title="loan" data-wpil-keyword-link="linked" data-wpil-monitor-id="223">loan</a>. The indictment alleges that in 2006, Migdal purchased condominiums in a development in Kihei, Maui. The defendants then sought the banks’ approval of the short sales in the same development in which Migdal owned the other properties. According to the indictment, Morgovsky and Midgal conspired to convince the banks to allow the properties to be sold to a person who was deceased, but whose identity was used to conceal the true identity of the purchaser. The conspiracy also allegedly involved submission of false statements to the bank about Midgal’s employment status and income. After the banks approved the short sales in 2009 and 2010, Migdal continued to treat the property as his own, including collecting rent and paying taxes and homeowners’ association dues. The properties were transferred to Migdal’s wife in April 2016.</p>
<p>On August 24, 2016, the United States Attorney’s Office for the Northern District of California filed a complaint against Morgovsky alleging he committed bank fraud. The indictment adds Migdal as a defendant and charges Morgovsky and Migdal each with two counts of bank fraud, in violation of 18 U.S.C. § 1344, and one count of conspiracy, in violation of 18 U.S.C. § 1349. The indictment also seeks forfeiture of the two Hawaii properties. Morgovsky made his initial appearance on August 26, 2016. He remains released from custody on a $1 million bond. Morgovsky’s next appearance is scheduled for October 4, 2014 before the Honorable Vince Chhabria, U.S. District Judge, for a status conference. Migdal is scheduled to make his initial appearance on October 3, 2016, in San Francisco.</p>
<p>An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of thirty years in prison and a fine of $1,000,000 for each count of bank fraud and conspiracy. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.</p>
<p>Assistant U.S. Attorneys John Hemann, Ila Deiss, and Colin Sampson are prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.</p>
<p> ;</p>
<p><a href="https://www.justice.gov/usao-ndca/pr/portola-valley-and-hillsborough-residents-charged-bank-fraud-scheme">Original PressReleases&#8230;</a></p>

Financial Fraud: Wilfred David Joseph Jobin-Reyes Sentenced For Embezzling $818,000 From SeaWorld
<h2>Seaworld Manager Sentenced to 30 Months in Prison for Stealing More Than $1 Million</h2>
<p><strong>Assistant U.S. Attorney Emily W. Allen (619) 546-9738</strong></p>
<p><strong><u>NEWS RELEASE SUMMARY</u> – September 23, 2016</strong></p>
<p>SAN DIEGO – Former SeaWorld San Diego manager Wilfred David Joseph Jobin-Reyes (known as “Sebastian Jobin”) was sentenced today to 30 months in custody for embezzling $818,000 from SeaWorld over more than eight years while he was employed there.</p>
<p>Jobin-Reyes created fake invoices for a sham company he secretly owned, called “SJ Merchandise.” He then used his management position to approve the payments on behalf of SeaWorld. He also created an alias along with a dummy email account he used to correspond with SeaWorld officials, pretending to be SJ Merchandise owner “John Caldwell.” In fact, Jobin-Reyes used his work computer to generate the fraudulent invoices, for disposable goods like “wildlife animal bookmarks,” “sea creature rings,” and “purple shiny ornaments” that were difficult to trace or verify in SeaWorld’s inventory. Over time, his invoices grew larger, so that by 2015 he was requesting fraudulent payments for amounts just under the $10,000 threshold that would have triggered further review by his bosses at SeaWorld. SeaWorld eventually discovered the fraud, but only after Jobin-Reyes had pocketed more than $800,000 in payments to his fake company.</p>
<p>Jobin-Reyes’ fraud did not stop with SeaWorld. He also used the sham merchandise company to cheat the IRS by claiming fake expenses on his tax returns. By pretending that his business was underwater with hefty losses, Jobin-Reyes reduced the amount of taxes he claimed he owed, and underpaid more than $200,000 for tax years 2010 through 2014. In fact, none of the claimed expenses were true, because SJ Merchandise didn’t conduct any real business at all.</p>
<p>In addition to the fabricated “John Caldwell,” Jobin-Reyes also stole the identity of a real person, his friend and former roommate who had once given Jobin-Reyes access to his personal information. Jobin-Reyes convinced his friend to open business banking and credit accounts, using the friend’s social security number and good credit, then used those accounts to receive and disburse the illegal proceeds from SeaWorld. He then went on to use the friend’s social security number to open several new credit cards, without the friend&#8217;s knowledge. Jobin-Reyes admitted that he left his friend with unpaid and overdue balances of at least $177,000.</p>
<p>Jobin used the money he stole from SeaWorld, the taxpayers, and his friend’s credit cards to fund a lavish lifestyle he could not otherwise afford. He spent the proceeds on cruises, plane tickets, hotels, restaurants, and shopping. In the year preceding his arrest, according to court documents, he traveled around the country from New Orleans to Hawaii, spending the stolen money. He even arranged to have credit cards printed for his family members, secretly racking up more debt on his friend’s credit.</p>
<p>“Business insiders who abuse the trust of their employers and the community should be warned that they face serious consequences and will be brought to justice,” said U.S. Attorney Laura E. Duffy. “We are dedicated to protecting our local businesses, citizens, and taxpayers from corruption and deceit.”</p>
<p>U.S. Secret Service Special Agent in Charge David Murray said, “Today’s sentencing is a reminder to those who engage in <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="613">financial</a> fraud and identity theft, that the U.S. Secret Service and its law enforcement partners will actively investigate and pursue prosecution of those who violate the trust of their employers for their own personal gain.”</p>
<p>“As today’s sentencing of Mr. Jobin-Reyes demonstrates, defrauding your employer, your friend, and deceiving the IRS results in serious consequences, both financially and in terms of one’s freedom,” stated IRS-Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS-Criminal Investigation is committed to working with our law enforcement partners, as well as with members of the local community, to identify, investigate, and prosecute those who commit fraud for their own personal financial gain.”</p>
<p>Jobin-Reyes was arrested in Dallas, Texas in March 2016, and since arrest he has been detained in federal custody as a flight risk. He was sentenced by U.S. District Judge Jeffrey T. Miller. In addition to the prison sentence, Jobin-Reyes was ordered to pay $818,000 in restitution to SeaWorld and $177,000 to the victim of the identity theft. He also is obligated to pay hundreds of thousands of dollars in back taxes and penalties to the IRS.</p>
<p><strong><u>DEFENDANT</u>:</strong></p>
<p>Wilfred David Joseph Jobin-Reyes, 16CR0811-JM Age: 48 San Diego, CA</p>
<p><strong><u>CHARGES</u></strong></p>
<p>Wire Fraud, in violation of 18 U.S.C. § 1343</p>
<p>Maximum Penalties: 20 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.</p>
<p>Filing False a Tax Return, in violation of 26 U.S.C. § 7206(1)</p>
<p>Maximum Penalties: 3 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.</p>
<p><strong><u>AGENCIES</u></strong></p>
<p>United States Secret Service</p>
<p>Internal Revenue Service Criminal Investigation</p>
<p> ;</p>
<p><a href="https://www.justice.gov/usao-sdca/pr/seaworld-manager-sentenced-30-months-prison-stealing-more-1-million">Original PressReleases&#8230;</a></p>

Financial Fraud: John Blake Tinkle Guilty To Charges of Wire Fraud and Money Laundering
<h2>Tomball Business Executive Convicted in $13 Million False Invoicing Scheme</h2>
<p>HOUSTON – The owner of Tinkle Management Inc. (TMI) has entered a guilty plea to charges of wire fraud and money laundering, announced U.S. Attorney Kenneth Magidson.</p>
<p>John Blake Tinkle, 60, of Tomball, admitted today that from 2008 through 2015, he falsely invoiced Houston-based Westlake Chemical Corporation for approximately $13 million in shipping supplies that TMI never delivered.</p>
<p>“For seven years, this defendant cheated local companies out of millions of dollars, using false invoices and fraudulent financing,” said Magidson. “Thanks to the hard work of the FBI and IRS-Criminal Investigation, his scheme was detected and ended. We will continue to aggressively investigate and prosecute corporate fraud, both in the energy industry and across our community.”</p>
<p>TMI was Westlake’s supplier of plastic shipping bags that Westlake used to ship its chemical products internationally. TMI delivered the shipping bags to Packwell Inc., a packaging and logistics company in La Porte. Packwell then used the bags to package Westlake’s chemical products and ship those products through the Houston ship channel. In addition to invoicing Westlake for bags that had actually been delivered, Tinkle submitted false invoices to Westlake for deliveries of bags to Packwell that, in reality, had not occurred.</p>
<p>Tinkle supported his false invoices to Westlake by attaching Packwell receiving reports Tinkle doctored to purportedly show the undelivered bags had actually been received by Packwell. To obtain financing, Tinkle then caused the fraudulent invoices to be presented to Charter Capital, a Houston factoring company, that relied on the invoices in providing funding to TMI. Westlake and Charter Capital paid TMI millions of dollars based on deliveries that never occurred.</p>
<p>U.S. District Judge Alfred Bennett accepted the plea today and has set sentencing for Dec. 8, 2016. At that time, Tinkle faces up to 20 years in federal prison for the wire fraud and 10 years for money laundering. He could also be ordered to pay a $250,000 fine. He was permitted to remain on bond pending that hearing.</p>
<p>The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.</p>
<p><a href="https://www.justice.gov/usao-sdtx/pr/tomball-business-executive-convicted-13-million-false-invoicing-scheme">Original PressReleases&#8230;</a></p>

Financial Fraud: Bart Wayne Volen Sentenced for Conspiring to Launder Monetary Instruments, and Filing a False Tax Return
<h2>Man Who Defrauded United Auburn Indian Community Sentenced to 8.5 Years in Prison</h2>
<p>SACRAMENTO, Calif. — Bart Wayne Volen, 54, of San Diego and Haiku, Hawaii, was sentenced today by United States District Judge Troy L. Nunley, to eight years and six months in prison for defrauding the United Auburn Indian Community, conspiring to launder monetary instruments, and filing a false tax return, Acting United States Attorney Phillip A. Talbert announced.</p>
<p>At sentencing, Judge Nunley noted that Volen had stolen from people who had become “like family members” to him.</p>
<p>“Bart Volen and his co-defendants used their trusted positions to steal millions of dollars from the UAIC,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Rather than stopping the fraud, Mr. Volen chose to benefit from it. Today’s sentencing should send a clear message that those involved in these types of schemes will be held accountable for their actions.”</p>
<p>According to court documents, between October 2006 and December 2007, Volen, Gregory Scott Baker, of Newcastle, and Darrell Patrick Hinz, 48, of Cameron Park, engaged in a scheme to defraud the UAIC. An indictment from August 2012 charged the defendants with conspiring to commit mail and wire fraud and various money laundering violations. A superseding indictment from April 2013 added additional charges, alleging that Volen and Hinz filed false tax returns in 2006 and 2007, and that Baker filed false tax returns from 2006 through 2009. The defendants ultimately stole over $18 million from the UAIC through their scheme.</p>
<p>According to court documents, in October 2006, the UAIC hired Volen, a developer, to finish construction on a school, a community center, and administrative offices on UAICâowned property on Indian Hills Road in Auburn. Volen submitted false and inflated invoices to the UAIC, and Baker and Hinz, both UAIC employees, approved the fraudulent invoices based on a kickback agreement between the three men. Volen supported his invoices with inflated cost proposals from his general contractor’s company, Sequoia Pacific Builders (SPB), and, at times, inflated invoices from various subcontractors. At Volen’s direction, over 160 SPB cost proposals were fraudulently inflated.</p>
<p>Baker was the UAIC tribal administrator whose duties included overseeing the Indian Hills office project. In this position of trust, he was subordinate only to the UAIC tribal council. Hinz was a contract employee hired by the UAIC to manage the construction at the Indian Hills office project site. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would sign checks to pay for completed work. During the scheme to defraud the tribe, both Baker and Hinz engaged in conduct to ensure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. They were later paid by Volen for their participation in the scheme.</p>
<p>In order to disguise the proceeds of the fraud, Hinz sent a number of fraudulent invoices to Volen. These invoices were for consulting work that Hinz claimed he did for Volen. After the issuance of the false invoices, Volen sent Hinz 29 checks, totaling approximately $7.5 million. Hinz paid Baker indirectly for his assistance in the scheme, using money he received from Volen.</p>
<p>According to court documents, Hinz paid for a $12,500 weekend trip that he and Baker took in Hawaii and for certain obligations owed by Baker. Hinz also purchased a number of things for Baker, including various assets, personal property — a $70,000 BMW and a mobile home — several investment properties, a vacation condominium in South Lake Tahoe, and various improvements to property, such as a $54,000 pool at his primary residence. All of these transactions were conducted for the purpose of concealing and disguising the proceeds from the UAIC fraud. During the course of the scheme, Baker received over $1.4 million.</p>
<p>With regard to the tax offense, according to court documents, Volen filed tax returns in which he falsely claimed personal expenses as business deductions. As a result, the United States suffered a tax loss of over $4.3 million.</p>
<p>Volen, Baker and Hinz have agreed to pay at least $17 million in restitution to the UAIC. Eatough has agreed to pay between $600,000 and $950,000 in restitution to the UAIC.</p>
<p>This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith, John K. Vincent and Kevin C. Khasigian prosecuted the case.</p>
<p>Chris W. Eatough, the owner of Sequoia Pacific Builders, previously pleaded guilty to a felony related to this case on June 20, 2013. Mr. Eatough was charged in case number 2:13-cr-214 TLN. Eatough is scheduled to be sentence by Judge Nunley on December 8, 2016. Any sentences issued in Mr. Eatough’s case will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.</p>
<p><a href="https://www.justice.gov/usao-edca/pr/man-who-defrauded-united-auburn-indian-community-sentenced-85-years-prison">Original PressReleases&#8230;</a></p>

Financial Fraud: Och-Ziff Capital Management Guilty to Conspiracy to Violate the FCPA
<h2>OCH-Ziff Capital Management Admits To Role In Africa Bribery Conspiracies And Agrees To Pay $213 Million Criminal Fine</h2>
<p><strong>Och-Ziff Enters into 3-Year Deferred Prosecution Agreement; Och-Ziff Subsidiary Pleads Guilty to Conspiracy to Violate the FCPA</strong></p>
<p>BROOKLYN, NY – The U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division, Fraud Section are prosecuting a New-York alternative investment and hedge fund manager, Och-Ziff Capital Management Group, LLC (Och-Ziff), which has agreed to pay a $213 million criminal penalty and enter into multiple criminal resolutions with the Department of Justice to resolve charges related to widespread bribery of officials in Libya and the Democratic Republic of Congo. As part of the resolution, Och-Ziff, the publicly traded parent company, entered into a three-year deferred prosecution agreement (DPA) with the Department of Justice. An Och-Ziff subsidiary, OZ Africa Management GP, LLC (OZ Africa), pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA). Today’s guilty plea and proceedings in connection with the DPA took place before United States District Judge Nicholas G. Garaufis in the U.S. District Court for the Eastern District of New York. Sentencing for OZ Africa has been scheduled for March 29, 2017, at 2:00pm.</p>
<p>U.S. Attorney Robert L. Capers of the Eastern District of New York, Principal Deputy Assistant Attorney David Bitkower of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Richard Weber, Chief, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.</p>
<p>“Och-Ziff, one of the largest hedge funds, positioned itself to profit from the corruption that is sadly endemic in certain parts of Africa, including in Libya, the Democratic Republic of the Congo, Chad, and Niger. Despite knowing that bribes were being paid to senior government officials, Och-Ziff repeatedly funded corrupt transactions. One Och-Ziff employee was so bold as to order the removal of language from their African joint venture’s internal audit report that called for an investigation of suspected bribery payments by a business partner. Today’s corporate resolutions, which include a more than $213 million criminal penalty and an independent compliance monitor, hold Och-Ziff accountable for placing profits above the law and will help ensure that the conduct brought to light here never happens again at this company,” stated United States Attorney Capers.</p>
<p>“This case marks the first time a hedge fund has been held to account for violating the Foreign Corrupt Practices Act,” said Principal Deputy Assistant Attorney General Bitkower. “In its pursuit of profits, Och-Ziff and its agents paid millions in bribes to high-level officials across Africa. By exposing corruption in this industry, the Criminal Division’s Fraud Section continues to root out wrongdoing of all types in the <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="612">financial</a> sector.”</p>
<p>“Gaining the upper hand in a business venture by engaging in corrupt practices is bribery in its purest form,” said FBI Assistant Director in Charge Sweeney. “Doing so with the intention of influencing a foreign official in his or her capacity is nothing short of corruption. In this scheme, payments of millions of dollars were paid out to senior officials within certain parts of Africa in exchange for access to profitable investment opportunities. This type of behavior can’t and won’t be tolerated. I commend the investigators and prosecutors who continue to work together at home and abroad to vigorously enforce the law within the confines of the Foreign Corrupt Practices Act.”</p>
<p>“Today’s plea and deferred prosecution agreement result from the unraveling of complex financial transactions orchestrated by Och-Ziff Capital Management Group, LLC and its subsidiary to facilitate illegal payments to foreign government officials,” said IRS-CI Chief Weber. “IRS-CI will continue to investigate pervasive bribery schemes used by corporations in the pursuit of attractive international investment opportunities.”</p>
<p>Under the DPA, Och-Ziff admitted to multiple conspiracy charges in a four-count criminal information, including two counts of conspiracy to violate the anti-bribery provisions of the FCPA, one count of falsifying its books and records and one count of failing to implement adequate internal controls. Additionally, OZ Africa pleaded guilty to conspiring to bribe senior officials in the Democratic Republic of Congo in connection with obtaining valuable mining concessions. Collectively, Och-Ziff and OZ Africa agreed to pay a criminal penalty of $213,055,689, and Och-Ziff agreed to retain an independent compliance monitor for a period of three years.</p>
<p><u>The DRC Bribery Scheme</u></p>
<p>Between 2005 and 2012, a businessman operating in the DRC with significant interests in the diamond and mining sectors in the DRC paid more than one-hundred million dollars in bribes to DRC officials for special access to attractive investment opportunities. In late 2007, Och-Ziff employees began discussions to partner with the businessman based upon his special access to these investment opportunities. Between 2008 and 2011, Och-Ziff entered into several DRC-related transactions with this businessman despite the fact that at least two Och-Ziff employees knew, and a senior Och-Ziff employee believed it was likely, that the businessman gained access to these attractive investment opportunities by making corrupt payments to government officials. Och-Ziff personnel funded these transactions understanding that Och-Ziff’s funds would be used in part to pay substantial sums of money to high ranking DRC officials to secure access to and preferential treatment for the investment opportunities. In late 2008, after an Och-Ziff employee was alerted that an audit of the businessman’s records revealed payments for DRC officials, that employee instructed that any references to those payments be removed from a final report of the audit. The businessman did, in fact, make corrupt payments to and for the benefit of DRC officials to secure the investment opportunities.</p>
<p><u>The Libya Bribery Scheme</u></p>
<p>Separately, but also beginning in 2007, a senior Och-Ziff employee engaged a third-party agent to assist the company in securing an investment from the Libyan sovereign wealth fund, the Libyan Investment Authority (LIA). At the time of the engagement, the senior Och-Ziff employee knew that the agent would need to make corrupt payments to Libyan officials to secure that investment. The agent was engaged without formal approval by Och-Ziff and without any due diligence conducted on the agent by Och-Ziff. From February 2007, the agent worked on behalf of Och-Ziff to obtain an asset placement from the LIA, including setting up a meeting between the senior Och-Ziff employee and the Libyan official who was empowered to make investment decisions for the LIA. In late November 2007, Och-Ziff received a $300 million investment from the LIA into Och-Ziff hedge funds. Shortly thereafter, Och-Ziff entered into a consulting agreement to pay a sham “finder’s fee” of $3.75 million, knowing that all or a portion of the fee would be paid to Libyan officials in return for their assistance in obtaining the LIA’s investment. The agent did in fact make corrupt payments to and for the benefit of Libyan officials to influence the LIA’s investment.</p>
<p><u>Internal Controls Failures and Falsified Books and Records</u></p>
<p>Further, Och-Ziff admitted that it knowingly and willfully falsified and caused to be falsified records related to its retention and payment of the agent in Libya. The falsified records concealed the true purpose of the payments, which purported to be for consulting purposes, but which actually would be used for corrupt payments to Libyan officials in return for their assistance in obtaining the LIA’s investment. Och-Ziff also failed to implement and maintain an adequate system of internal accounting controls designed to detect and prevent the misappropriation of assets by its employees, agents, and business partners. As a result, the company failed to prevent bribe payments from being made in the DRC, Libya, as well as in Chad and Niger, where an Och-Ziff joint venture made mining-related investments. For all the criminal conduct included in these resolutions, Och-Ziff reaped more than $210 million in illegal profits.</p>
<p><u>The Corporate Resolutions</u></p>
<p>The Department entered into this resolution, in part, due to Och-Ziff’s failure to voluntarily self-disclose the offense conduct and the seriousness of the conduct including the high-dollar amount of bribes paid to foreign officials and involvement by a high level employee within Och-Ziff. Notwithstanding, Och-Ziff received a 20 percent reduction off the bottom of the U.S. Sentencing Guidelines range for its cooperation with the government’s investigation. Och-Ziff also committed to continue to enhance its compliance program and internal controls, to cooperate with the Department in ongoing investigations, and to retain an independent compliance monitor pursuant to the terms outlined in the DPA.</p>
<hr />
<p>In connection with the government’s investigation, Samuel Mebiame, a Gabonese national, was charged on August 16, 2016, by criminal complaint with conspiring to bribe foreign government officials to obtain mining rights in Chad and Niger, as well as Guinea.<a id="_ftnref1" title="" href="https://www.justice.gov/usao-edny/pr/och-ziff-capital-management-admits-role-africa-bribery-conspiracies-and-agrees-pay-213#_ftn1" name="_ftnref1"><u>[1]</u></a> According to documents filed in court, Mebiame worked as a “fixer” for a mining company that was owned by a joint venture between Och-Ziff and a Turks &; Caicos incorporated entity. In that capacity, Mebiame paid bribes to high-ranking government officials in Niger and Chad to obtain the mining rights. During the charged conspiracy, Mebiame repeatedly traveled to the United States to further the scheme, including to meet with co-conspirators at the Plaza Hotel in New York and to start companies and open bank accounts through which he could receive international wire transfers from co-conspirators.</p>
<hr />
<p>In a parallel proceeding announced today, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against Och-Ziff Capital Management Group LLC and OZ Management LP, whereby Och-Ziff agreed to pay approximately $199 million in disgorgement to the SEC, including prejudgment interest. The total amount of the global resolution is thus approximately $412 million.</p>
<p>The FBI’s New York Field Office and IRS-CI’s New York office are investigating the case. The department appreciates the significant cooperation and assistance provided by the SEC in this matter. The Swiss Federal Office of Justice, the British Virgin Islands Central Authority, the Maltese judicial authorities and authorities in Jersey and Guernsey also provided assistance.</p>
<hr />
<p>The case is being prosecuted by Assistant U.S. Attorneys James P. Loonam, Jonathan P. Lax, and David Pitluck of the Business and Securities Fraud Section of the U.S. Attorney’s Office for the Eastern District of New York, and Assistant Deputy Chief Leo Tsao and Trial Attorney James P. McDonald of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.</p>

Healthcare Fraud: Vibra Healthcare LLC (Vibra) – False Claims Act by Billing Medicare
<h2>VIBRA HEALTHCARE TO PAY $32.7 MILLION TO RESOLVE CLAIMS FOR MEDICALLY UNNECESSARY SERVICES</h2>
<p>WASHINGTON &#8211; Vibra Healthcare LLC (Vibra), a national hospital chain headquartered in Mechanicsburg, Pennsylvania, has agreed to $32.7 million, plus interest, to resolve claims that Vibra violated the False Claims Act by billing Medicare for medically unnecessary services, the Department of Justice announced today.</p>
<p>“Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers of taxpayer-funded federal health care services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”</p>
<p>Vibra operates approximately 36 freestanding long-term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states. LTCHs provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. IRFs are intended for patients needing rehabilitative services that require hospital-level care. The government alleged that between 2006 and 2013, Vibra admitted numerous patients to five of its LTCHs and to one of its IRFs who did not demonstrate signs or symptoms that would qualify them for admission. Moreover, Vibra allegedly extended the stays of its LTCH patients without regard to medical necessity, qualification and/or quality of care. In some instances, Vibra allegedly ignored the recommendations of its own clinicians, who deemed these patients ready for discharge.</p>
<p><span lang="EN"><span style="color: #000000;">“Pursuing and recovering fraudulent billing for unnecessary services is a priority of my office,” stated U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky. “This significant case against Vibra Healthcare and today’s settlement agreement is but one example of the vigorous work against health care fraud taking place in the Western District of Kentucky and across the nation.”</span></span></p>
<p>As part of the settlement, Vibra also agreed to enter into a chain-wide corporate integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.</p>
<p>“Medical necessity is fundamental if health providers wish to claim taxpayer funds for medical care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long-term care.”</p>
<p>Part of the allegations resolved by this settlement was originally filed under the <i>qui tam</i> or whistleblower provisions of the False Claims Act by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan. Daniel filed her suit in the Southern District of Texas, where one of Vibra’s LTCHs was located. Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Daniel will receive at least $4 million.</p>
<p>This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="611">financial</a> fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal healthcare programs.</p>
<p>This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Southern District of Texas in Houston and for the Western District of Kentucky; and the HHS-OIG. The <i>qui tam </i>case is captioned United States ex rel. Daniel v. Vibra Healthcare, LLC, Civil Action No. 10-5099 (S.D. Tex.).</p>
<p>The claims resolved by the settlements are allegations only and there has been no determination of liability.</p>
<p><a href="https://www.justice.gov/usao-sdtx/pr/vibra-healthcare-pay-327-million-resolve-claims-medically-unnecessary-services">Original PressReleases&#8230;</a></p>

Financial Fraud: Frederick Ippolito Sentenced For $548,487.00 Tax Evasion
<h2>Town Of Oyster Bay Commissioner Sentenced To 27 Months In Prison For Tax Evasion</h2>
<p class="node-subtitle center"><strong>Defendant Willfully Failed to Report Over $2 Million in Consulting Fees</strong></p>
<p>Earlier today in Central Islip, New York, Frederick Ippolito, former Town of Oyster Bay Commissioner of Planning and Development, was sentenced to 27 months’ imprisonment, three years of supervised release, and $548,487.00 in restitution, following his guilty plea on January 26, 2016, to tax evasion. The sentencing proceeding was held before U.S. District Judge Leonard D. Wexler.</p>
<p>The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS).</p>
<p>In announcing the sentence, United States Attorney Capers stated, “Today’s sentence reinforces that no one is immune from the laws of the United States. The defendant’s position as an influential official within a local municipality did not exempt him from paying his fair share of taxes, just like any other citizen. He has now been held accountable for his actions.” Mr. Capers extended his grateful appreciation to IRS-Criminal Investigation, the agency responsible for leading the government’s investigation.</p>
<p>From 2008 to 2013, Ippolito received over $2 million in consulting fees from Carlo Lizza &; Sons Paving, Inc., a company located in Old Bethpage, New York, as well as from a principal of that company. Ippolito evaded taxes on that income by willfully failing to report it on his personal tax returns or the returns of entities he controlled. Ippolito is the President of CAI Associates, LTD, a consulting and snow removal business, and a former officer of CAI Restaurant, Inc., d/b/a Christiano’s, in Syosset, New York.</p>
<p>From 2009 through January 2016, Ippolito served as the Commissioner of Planning and Development for the Town of Oyster Bay (TOB), a municipality in Nassau County, New York. The TOB’s Department of Planning and Development was responsible for the enforcement of all codes, rules, and ordinances pertaining to building and zoning, and supervised the issuance of permits for construction within the TOB. As Commissioner, Ippolito oversaw the TOB Department of Planning and Development’s several divisions, which included, among others, the Building Division, the Code Compliance Bureau, the Division of Administration of Board of Appeals, and the Planning Division. Ippolito’s resignation as a Commissioner was accepted by the TOB following his guilty plea.</p>
<p>The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney are in charge of the prosecution.</p>
<p><strong><u>The Defendant</u></strong><strong>:</strong></p>
<p>FREDERICK IPPOLITO<br />
Age: 77<br />
Syosset, New York</p>
<p>E.D.N.Y. Docket No. 15-CR-129 (LDW)</p>
<p><a href="https://www.justice.gov/usao-edny/pr/town-oyster-bay-commissioner-sentenced-27-months-prison-tax-evasion">Original PressReleases&#8230;</a></p>

Financial Fraud: Kara Hayden Charged In Bank Fraud and Aggravated Identity Theft
<h2>Anchorage Insurance Sales Woman Arrested on Charges of Bank Fraud and Aggravated Identity Theft</h2>
<p>Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage woman has been taken into custody today on charges of two counts of Bank Fraud and two counts of Aggravated Identity Theft.</p>
<p>Kara Hayden, Jr., 50, of Anchorage, is charged in a four-count indictment with a scheme to obtain money from banks through fraudulent pretenses using personal information of former insurance clients to obtain credit cards.</p>
<p>According to Assistant U.S. Attorney Aunnie Steward, who presented the case against Kara Hayden to the grand jury, from at least October 2014 to December 2015, Hayden applied for seventeen credit cards using the names, social security numbers, and dates of birth of nine different victims without their knowledge or authorization. Hayden successfully obtained two credit cards before the investigation of this case interrupted her scheme. The two credit cards were obtained using the personal identifying information of three of her former insurance clients. Hayden obtained approximately $14,500 in cash and retail goods prior to the discovery of her scheme.</p>
<p>The law provides for a maximum sentence of 30 years’ incarceration and a $1 million fine or both.</p>
<p>Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.</p>
<p>“Postal Inspectors worked closely with the U.S. Attorney’s Office and the Alaska State Troopers on this investigation,” said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service. “We take identity theft and the violation of customers’ trust very seriously and will continue to vigorously protect the U.S. Mail and customers against all forms of criminal attack and misuse.”</p>
<p>The U.S. Postal Inspection Service, assisted by the Alaska State Troopers, conducted the investigation leading to the indictment in the case.</p>
<p>An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilty beyond a reasonable doubt.</p>
<p><a href="https://www.justice.gov/usao-ak/pr/anchorage-insurance-sales-woman-arrested-charges-bank-fraud-and-aggravated-identity-theft">Original PressReleases&#8230;</a></p>

Investment Fraud: Ivan Valdes and 4 Other Charged for Investment Fraud and Kickback Scheme
<h2>Miami-Dade County Aviation Department Division Director and Four Others Charged in $5,000,000 Fraud and Kickback Scheme</h2>
<p>The Miami-Dade County Aviation Department Division Director and four others were charged in a $5,000,000 <em>fraud and kickback scheme</em>.</p>
<p>Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney for Miami-Dade County, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.</p>
<p><strong>Ivan Valdes</strong>, 46, of Miami, the Division Director for the Aviation Terminal Building Maintenance for the Miami-Dade County Aviation Department, was charged in an Information with theft in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. A separate Information charges <strong>Roy Jesus Bustillo</strong>, 37, <strong>Rolando Perez</strong>, 57, and <strong>Jose Barroso</strong>, 51, all of Miami, with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 371. Another Information charges <strong>Ygnacio Valdez</strong>, 45, of Miami, an employee in the Procurement Section of the Miami-Dade County Aviation Department, with misprision of a felony, in violation of Title 18, United States Code, Section 4.</p>
<p>“Taxpayers deserve to have their hard-earned monies fund local government, not the pockets of individuals who deprive South Florida residents of the benefit of honest services,” stated U.S. Attorney Ferrer. “Corruption by those who hold the public’s trust corrodes the practice of fair business dealings. The U.S. Attorney’s Office, the FBI, and our partners at the State Attorney’s Office will continue to target for prosecution all corrupt officials, regardless of their position.”</p>
<p>“To most people, Ivan Valdes would have been a “Great American Success Story” as he rose from a simple worker to an upper-level manager of one of America’s most dynamic airports,” commented Miami-Dade State Attorney Katherine Fernandez Rundle. “Instead, pure greed and a misplaced sense of self-entitlement led him to believe that he had a right to pocket taxpayer’s money. He was wrong. My public corruption prosecutors, federal prosecutors from the U.S. Attorney’s Office, the Miami-Dade Police department and the FBI are constantly working to arrest and convict any public official who steals from the public.”</p>
<p>“When corrupt officials put self-interest and personal enrichment ahead of their obligation to be good stewards of taxpayer dollars, they breach the public&#8217;s trust,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI will continue to investigate and hold accountable any public official who utilizes their position for personal gain. We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”</p>
<p>As set forth in the charging documents, Bustillo was the exclusive area representative in South Florida for the sale of certain LED light fixtures. In or about 2010, Ivan Valdes told Barroso that he would request that the Miami-Dade County Aviation Department purchase the light fixtures represented by Bustillo, if he was paid a share of the proceeds. Valdes and Barroso agreed and during the period of 2010 through and including 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of millions of dollars of LED light fixtures. Bustillo provided a quote to each of the vendors interested in competing for the Invitation to Quote. Global Electrical &; Lighting Supplies, Inc., owned by Rolando Perez, submitted bids and was awarded the contracts for each and every Invitation to Quote issued. Perez and Bustillo had a secret agreement wherein Perez would be the only vendor who knew the actual price that Bustillo had agreed upon with the lighting manufacturer for the light fixtures and that a fake mounting accessory was included in the Invitations to Quote. Knowing the additional profit that was to be received from each of the contracts, Bustillo and Perez were able to win the Invitation to Quote by keeping Perez’ bid price low. In order to help ensure that Perez was awarded each of the contracts, Ivan Valdes paid thousands of dollars in cash to Ygnacio Valdez, whose duties in the procurement section in the Miami-Dade County Aviation Department, included collecting and tallying the bids and declaring the lowest responsive bidder on the Invitations to Quote.</p>
<p>On two occasions, Ivan Valdes instructed Barroso to direct Perez to bid on an Invitation to Quote for light fixtures, but he further instructed that the light fixtures should not be ordered from the lighting manufacturer. Instead, on one occasion the conspirators used light fixtures already in stock at the Miami-Dade County Aviation Department to satisfy the purchase. On the other occasion, no light fixtures were ever provided, not even from those already in stock. Perez bid and won the contracts and he and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to Miami-Dade County Aviation Department.</p>
<p>During the course of the conspiracy, the co-conspirators defrauded the Miami-Dade County Aviation Department of approximately $5,250,000. Barroso and Ivan Valdes split fraudulent proceeds of approximately $2.2 million. Bustillo, through his companies, received fraudulent proceeds of approximately $764,000. Perez received fraudulent proceeds of approximately $1.8 million.</p>
<p>If convicted, the defendants face a range of statutory penalties. Ivan Valdes faces a statutory maximum term of imprisonment of 10 years and fines of up to $250,000. Bustillo, Perez, and Barroso face a statutory maximum term of imprisonment of 5 years and a fine of up to $250,000. Ygnacio Valdez faces a statutory maximum term of imprisonment of 3 years and a fine of $250,000.</p>
<p>Mr. Ferrer commended the investigative efforts of the FBI and the Miami-Dade County State Attorney’s Office and its Public Corruption Unit in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.</p>
<p>An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty.</p>
<p>Related court documents and information may be found on the website of the District Court for the Southern District of Florida at <a href="http://www.flsd.uscourts.gov/"><u>www.flsd.uscourts.gov</u></a> or on <a href="http://pacer.flsd.uscourts.gov/"><u>http://pacer.flsd.uscourts.gov</u></a>.</p>
<p><a href="https://www.justice.gov/usao-sdfl/pr/miami-dade-county-aviation-department-division-director-and-four-others-charged-5000000">Original PressReleases&#8230;</a></p>

Mortgage Fraud: Sam Ames Sentenced In A Conspiracy to Commit Mortgage Fraud
<h2>Lansing Man Sentenced In Federal Mortgage Fraud Probe</h2>
<p>Sam Ames Sent to Prison for Role in Mortgage Fraud Conspiracy</p>
<p><strong> GRAND RAPIDS, MICHIGAN</strong> — U.S. Attorney Patrick Miles announced today that Sam Ames, 33, of Charlotte, Michigan was sentenced to eight months in prison for his role in a conspiracy to commit mortgage fraud in connection with his dealings with CDC Investments and Hometown Financial. He was also ordered to pay a fine of $7,500 and restitution in the amount of $285,000 to the financial institutions defrauded. The sentence was imposed by Chief U.S. District Judge Robert J. Jonker.</p>
<p>On March 15, 2016, Ames pled guilty to conspiring with others to commit bank fraud in connection with real estate in and around Lansing, Michigan, from in or about 2006 to 2007. The conspiracy, which resulted in losses to <a class="wpil_keyword_link" href="https://www.fraudswatch.com/category/mortgage/" title="mortgage" data-wpil-keyword-link="linked" data-wpil-monitor-id="69">mortgage</a> lenders exceeding $550,000, enabled the perpetrators to use bank funds to enrich themselves as a result of sham real estate transactions.</p>
<p>Judge Jonker decided to sentence Ames below the recommended range of 30-37 months because he felt Ames had turned his life around since committing his crimes. But the Judge rebuffed a defense request for a probationary sentence. While the Judge declared himself persuaded that Ames was a different person than the one who defrauded banks and mortgage companies, the Judge stated that it was important for the public to see that a prison term awaits anyone who engages in mortgage fraud as rampant as the Ames conspiracy was.</p>
<p>Ames’s prosecution is the result of a continuing investigation by the Mortgage Fraud Task Force, comprised of federal investigators including the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, eighteen individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all the defendants and restitution orders exceeding $14,000,000.</p>
<p>U.S. Attorney Miles praised the cooperation between federal, state and local investigators participating in the Mortgage Fraud Task Force. The prosecution was handled by Assistant U.S. Attorney Timothy VerHey.</p>
<p><a href="https://www.justice.gov/usao-wdmi/pr/2016_0923_Ames">Original PressReleases&#8230;</a></p>

Tax Fraud: LESTER MORRISON Sentenced For Large-Scale Tax Fraud Scheme
<h2>Manhattan Federal Court Permanently Bars Tax Preparer Who Orchestrated Tax Fraud Scheme And Four Of His Associates From Engaging In Tax Preparation Business</h2>
<p>Preet Bharara, the United States Attorney for the Southern District of New York, announced today that U.S. District Judge Alison J. Nathan has permanently enjoined LESTER MORRISON, a tax preparer who pled guilty in 2010 to orchestrating a large-scale tax fraud scheme, from working as a federal income tax return preparer or engaging in any conduct that interferes with the administration and enforcement of federal tax laws. Judge Nathan previously issued permanent injunctions against four of Morrison’s associates who also had pled guilty to tax fraud, Paulette Bullock, Gary Hanna, Joy David, and Kevin Vaden, to bar them from engaging in the tax preparation business.</p>
<p>Manhattan U.S. Attorney Preet Bharara said: “The injunctions against Lester Morrison and his cohorts make clear that tax preparers who defraud the IRS will not only face criminal charges but will also be barred from working in the tax return preparation business. This Office is committed to using all the enforcement tools at its disposal to protect the integrity of the federal tax system and public funds.”</p>
<p><strong>As alleged in the Complaint and the United States’ filings:</strong></p>
<p>Between 2000 and 2008, MORRISON and his associates orchestrated a tax fraud scheme involving the preparation of thousands of false and fraudulent tax returns through a tax preparation business located in the Bronx and Englewood, New Jersey. The fraudulent tax returns prepared by MORRISON and his associates sought improper deductions by, among other things, using stolen identities of deceased children to claim dependent deductions, and claiming phony business losses for non-existent businesses. In 2010, MORRISON and his four associates pled guilty to tax fraud in federal court. As of April 2016, MORRISON and his associates have all been released from prison.</p>
<p>In connection with entering the injunction against MORRISON, the Court found, among other things, that:</p>
<ul>
<li>Morrison was the organizer and leader of a tax preparation fraud scheme;</li>
<li>Morrison caused loss of tax receipts to the United States in excess of $17 million;</li>
<li>Morrison lied to the IRS during the course of the IRS’s investigation into his conduct; and</li>
<li>Enjoining Morrison from acting as a tax return preparer is needed to protect the integrity of the federal tax system.</li>
</ul>
<p>Based on those findings, the Court permanently enjoined MORRISON, either personally or by acting in concert with others, from acting as a federal income tax preparer for compensation, providing tax advice or services for compensation, or representing any person or entity before the IRS for compensation. The Court also permanently enjoined MORRISON from engaging in conduct that interferes with the administration or enforcement of federal tax laws. The Court further empowered the Government to take appropriate steps to monitor MORRISON’s compliance.</p>
<p>The Court previously made similar findings and imposed similar injunctions against each of MORRISON’s four associates.</p>
<p>The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Li Yu is in charge of the case.</p>
<p><a href="https://www.justice.gov/usao-sdny/pr/manhattan-federal-court-permanently-bars-tax-preparer-who-orchestrated-tax-fraud-scheme">Original PressReleases&#8230;</a></p>

Financial Fraud: George E. Smith Sentenced For a Fraud Scheme
<h2>Chicago Businessman Sentenced to Two Years in Prison for Grant Fraud Scheme</h2>
<p>Springfield, Ill. – A Chicago businessman has been ordered to serve 24 months in prison for a fraud scheme that resulted in two state agencies awarding separate, but nearly identical, grants to his not-for-profit entity in September 2008. U.S. District Court Judge Sue E. Myerscough sentenced George E. Smith, 66, and ordered that Smith pay restitution of nearly $500,000 to the state. Judge Myerscough allowed Smith to self-report as directed by the federal Bureau of Prisons to begin serving his prison sentence. Smith waived indictment and pled guilty in March 2016, to two counts of mail fraud and one count of money laundering.</p>
<p>In rendering today’s sentence, Judge Myerscough noted that Smith exploited his personal relationship with a former director of the Illinois Department of Children and Family Services related to a grant in the amount of $450,000 awarded by the agency on Sept. 2, 2008, under the Students at Risk Program. On Sept. 8, 2008, the Illinois Board of Education awarded Smith’s not-for-profit a similar grant in the amount of $342,000. According to the terms of the grants, both provided for similar services to be provided to the same at-risk population in the Chicago area during fiscal year 2009. The populations served, sources of referral, services to be provided, and the goals for each grant were essentially identical. Neither DCFS nor ISBE were aware of the issuance of an identical grant by the other state agency. Smith then converted the duplicate funding to his personal and business use.</p>
<p>Both grants were awarded to Diversified Behavioral Comprehensive Care, a not-for-profit entity owned and operated by Smith. In addition, Smith owned and operated three for-profit entities: Diversified Behavioral Services, Inc., Management Planning Institute, Inc., and the Institute for Positive Child and Family Development. From 2005 through 2011, Smith, through both his not-for-profit and for-profit entities, received millions of dollars in funding from agencies of the state of Illinois, including DCFS, ISBE, and the Illinois Department of Human Services.</p>
<p>Smith further admitted that in February 2009, he caused Illinois DHS to award a third grant of $200,000 to DBCC to provide community services relating to the prevention, intervention, treatment and rehabilitation of alcohol and other drug abuse and dependency. In fact, Smith admitted that he submitted and caused to be submitted false and fraudulent documentation to DHS falsely representing the amount of community services DBCC actually provided under the DHS grant and fraudulently caused DHS to pay DBCC a total of $138,901.</p>
<p>Smith was ordered to pay restitution in the amount of $342,000 to the Illinois State Board of Education and $138,901 to the Illinois Department of Human Services – Division of Alcoholism and Substance Abuse.</p>
<p>Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG) with the assistance and cooperation of the Office of Inspector General, Illinois Department of Children and Family Services; the Illinois Attorney General; the Illinois Board of Education, and the Illinois Department of Human Services.</p>
<p><a href="https://www.justice.gov/usao-cdil/pr/chicago-businessman-sentenced-two-years-prison-grant-fraud-scheme">Original PressReleases&#8230;</a></p>

Financial Fraud: Christopher Swartz Guilty For Investment Fraud Scheme and Tax Evasion
<h2>New York Restaurant Entrepreneur Pleads Guilty to Ten-Year Investment Fraud Scheme and Tax Evasion</h2>
<p><strong>Defendant Deceived Investors, Diverted Funds and Dodged Tax Obligations</strong></p>
<p>WASHINGTON – A Watertown, New York food and restaurant entrepreneur and franchisor pleaded guilty today to one count of <strong>wire fraud</strong> and one count of<strong> tax evasion</strong> announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Richard Hartunian for the Northern District of New York.</p>
<p>According to the criminal information and plea agreement filed with the U.S. District Court in Utica, New York, between 2005 and 2015, Christopher Swartz, 46, engaged in a promissory note <strong>scheme to defraud lenders and investors</strong>, as well as a scheme to <em>evade taxes</em> and obstruct the Internal Revenue Service (IRS).</p>
<p>“Mr. Swartz used his business enterprises to <em>steal from lenders, investors, and the United States</em>, hiding behind an elaborate web of entities and <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="609">financial</a> transactions,” said Principal Deputy Assistant Attorney General Ciraolo. “This case serves as clear notice that no one is above the law, and those individuals who seek to evade their tax obligations will face prosecution and incarceration, regardless of the complexity of their schemes or economic status.”</p>
<p>“The defendant’s wide-ranging, persistent, and lengthy fraud and tax evasion schemes cost investors and the IRS millions of dollars,” said U.S. Attorney Hartunian. “My office is pleased to be part of the efforts by the Tax Division and IRS-Criminal Investigation to hold him accountable for his brazen conduct.”</p>
<p>“As highly trained and experienced financial investigators, IRS special agents are particularly adept at tracing the flow of funds and uncovering hidden assets,” said Special Agent in Charge Shantelle P. Kitchen of IRS Criminal Investigation, New York Field Office. “Mr. Swartz’s conviction serves as a warning to anyone who schemes to divert money from a business in order to conceal income and evade taxes.”</p>
<p>Swartz, using his multiple interests in various food and restaurant businesses, raised money by fraudulently inducing lenders with the promise of repayment at high-interest rates and ownership interests in his companies. Swartz misappropriated and diverted funds received and when lenders and investors sought the return of their funds, Swartz attempted to lull them with false and fraudulent excuses, assurances, and partial payments, including payments by checks that he knew, would bounce. Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors, thereby attempting to prevent recovery of their funds.</p>
<p>As one part of the scheme, in 2009, Swartz used a promissory note and the offer of an equity interest in the Jreck Subs franchise to induce an investor group from New York City to provide $1.5 million in funds, including funds for the construction of new stores and the growth of the chain. Swartz misappropriated and diverted a substantial portion of the funds. Swartz then solicited additional loans from this same group, fraudulently inducing them with a series of additional promissory notes, which he failed to honor while misappropriating funds. Swartz purported to secure some of the notes with fictitious and forged rebate agreements.</p>
<p>Swartz admitted that between 2005 and 2015, he also engaged in a 10-year tax evasion scheme, filing false tax returns that understated his personal income. Swartz diverted money from business accounts and disguised these diversions in the company records as, among other things, loans and business expenses. He made extensive use of cash to diminish the traceability of funds and concealed his ownership of various assets using multiple entities and nominees. Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.</p>
<p>U.S. District Judge David N. Hurd scheduled sentencing for Jan. 19, 2017. Swartz faces a statutory maximum sentence of 20 years in prison for his conviction on the wire fraud count, and five years in prison on the tax evasion count, as well as a period of supervised release and monetary penalties. As a condition of the plea agreement, Swartz agreed to an order of restitution payable to any individuals and entities determined to be, at the time of sentencing, victims of his schemes.</p>
<p>The district court entered a preliminary order of forfeiture of assets, including forfeiture of Swartz’s interests in the Jreck Subs franchisor corporate business, which receives royalty payments from store owners based on a percentage of store sales. Under current law, if a final forfeiture order is entered, criminally forfeited assets may be used as a source of funds to pay restitution to victims. According to court documents, the number of victims may be in excess of 130.</p>
<p>Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Hartunian thanked special agents of IRS-Criminal Investigation and the FBI, and an IRS revenue agent, who conducted the investigation, as well as Assistant Chiefs John N. Kane, Jr. and Andrew Kameros, and Trial Attorney Abigail Burger Chingos of the Tax Division, who are prosecuting the case.</p>
<p>Additional information about the Tax Division and its enforcement efforts may be found on the division’s <a href="https://www.justice.gov/tax"><u>website</u></a>.</p>
<p><a href="https://www.justice.gov/usao-ndny/pr/new-york-restaurant-entrepreneur-pleads-guilty-ten-year-investment-fraud-scheme-and-tax">Original PressReleases&#8230;</a></p>

Financial Fraud: Tyler Sutton Guilty In Bank Fraud Conspiracy And Stolen Identity
<h2>KC Man Pleads Guilty to Bank Fraud Conspiracy</h2>
<p>KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a <strong>bank fraud conspiracy</strong> in which he operated a flop house where he paid drug addicts for <strong>stolen identity</strong> information that was used to create counterfeit checks.</p>
<p>Tyler Sutton, 54, of Kansas City, pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to commit <em>bank fraud</em>, possession of counterfeit securities, possession of stolen mail, and identity theft. Sutton also pleaded guilty to two counts of aggravated <em>identity theft</em>.</p>
<p>Sutton was a property manager residing in the 400 block of Gladstone Boulevard in Kansas City, although he only paid rent for one month and was evicted in October 2014. He used the house to conduct his illegal business by operating it as a flop house where he offered cash and/or drugs to drug addicts who brought him stolen mail, identities, addresses, credit card numbers and bank account information. Sutton often allowed the addicts to stay at the residence.</p>
<p>Sutton also unlawfully obtained identity and account information belonging to other persons and businesses by stealing these items from businesses and from the mail. Sutton and co-conspirators used the stolen identity information to create counterfeit identifications and checks, which were cashed at retail stores and <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="608">financial</a> institutions.</p>
<p>Sutton did not usually create counterfeit identifications and checks himself, nor did he personally present counterfeit identifications and cash checks. Rather, he instructed others in the making and presenting of counterfeit identifications and checks, and shared the illegal proceeds with his co-conspirators. In this manner, Sutton attempted to insulate himself from liability.</p>
<p>Sutton admitted that the intended loss amount was $83,981.</p>
<p>Co-defendants Gary K. Keesler, 37, and Chad M. Mills, 28, both of Kansas City, Mo., and Christopher Hite, 33, of Windsor, Mo., have pleaded guilty to their roles in the conspiracy and have been sentenced.</p>
<p>Under federal statutes, Sutton is subject to a sentence of up to five years in federal prison without parole for the conspiracy, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated <strong>identity theft</strong>. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.</p>
<p>This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.</p>
<p><a href="https://www.justice.gov/usao-wdmo/pr/kc-man-pleads-guilty-bank-fraud-conspiracy">Original PressReleases&#8230;</a></p>

Financial Fraud: Yordan Gorotiza Sentenced For Tax Fraud Schemes
<h2>City of Miami Resident Sentenced to More Than 4 Years in Prison for Possessing 242 Stolen Identities Used in Unemployment and Tax Fraud Schemes</h2>
<p>A City of Miami resident was sentenced to 51 months in prison, to be followed by three years of supervised release, for possessing 242 stolen identities used in unemployment and tax fraud schemes.</p>
<p>Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Miami Office, and Steve Steinberg, Chief, Aventura Police Department, made the announcement.</p>
<p>Yordan Gorotiza, 26, was sentenced by U.S. District Judge Paul C. Huck to 51 months in prison, to be followed by three years of supervised release, a $200 special assessment, and $33,608 in restitution, stemming from his conviction on one count of possession of fifteen or more unauthorized access devices (Social Security numbers) with intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.</p>
<p>According to court documents, during a traffic stop of Gorotiza’s vehicle, law enforcement officers found Gorotiza in possession of (among other items) four Florida unemployment cards in the names of other individuals; 26 Visa gift cards; a Florida driver’s license with Gorotiza’s picture but with another individual’s name; and a book bag containing personal identifying information (PII) of 242 different people, including employment records from a business and patient data sheets from a hospital. Several of the sheets contained handwritten driver&#8217;s license numbers and markings commonly used to represent tax or unemployment benefits filings.</p>
<p>Records from the Florida Department of Economic Opportunity show that between October 1, 2013, and July 11, 2014, at least 64 of the victims had their personal information used without authorization to obtain unemployment benefits, including the victims whose unauthorized unemployment cards Gorotiza possessed during the traffic stop. The total actual loss to the Florida Department of Economic Opportunity was $33,608, and the total intended loss attributable to Gorotiza was $281,009.</p>
<p>Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, the Aventura Police Department and the Florida Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.</p>
<p>Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on <a href="http://pacer.flsd.uscourts.gov/">http://pacer.flsd.uscourts.gov</a>.</p>
<p><a href="https://www.justice.gov/usao-sdfl/pr/city-miami-resident-sentenced-more-4-years-prison-possessing-242-stolen-identities-used">Original PressReleases&#8230;</a></p>

Financial Fraud: Jose Miguel Tapia Sentenced For Bank Fraud And Aggravated Identity Theft
<h2>Baltimore Fraudster Sentenced To Five Years In Federal Prison For Bank Fraud And Aggravated Identity Theft</h2>
<p><strong>Committed Multiple Fraud Schemes Over a Four-Year Period</strong></p>
<p><strong><em>Baltimore, </em></strong>Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Jose Miguel Tapia, age 30, of Baltimore, to five years in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft arising from several schemes in which Tapia fraudulently obtained over $130,000. Chief Judge Blake also entered an order requiring Tapia to pay restitution in the full amount of the victims’ losses, which is $132,548.85.</p>
<p>The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service &#8211; Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.</p>
<p>According to Tapia’s plea agreement, from October 2010 through November 2014, Tapia devised multiple schemes to defraud <a class="wpil_keyword_link" href="https://www.fraudswatch.com/tag/financial-fraud/" title="financial" data-wpil-keyword-link="linked" data-wpil-monitor-id="607">financial</a> institutions. For example, during the time of the fraud Tapia obtained the personal identification information of an individual, which Tapia used to gain access to the victim’s credit accounts. Tapia then made purchases totaling approximately $41,000 against the victim’s credit cards. In addition, Tapia submitted fraudulent applications for the financing of automobiles, using the personal information of the victim in order to qualify for the loans and to purchase the vehicles. Tapia obtained and attempted to obtain vehicles worth approximately $38,000, including a 2011 Infinity G37X luxury vehicle, which Tapia purchased on October 9, 2014, using the social security number of the victim.</p>
<p>From September through November 2014, Tapia and others posed as account holders of two businesses in order to gain access to their business accounts at a home improvement store. Once he gained access to the accounts, he made purchases on the accounts and changed the phone numbers and passwords for the accounts without the knowledge and consent of the business owners. Tapia made a total of approximately $48,000 in unauthorized purchases at the home improvement store against the business accounts of the victims. To extend the scheme and have access to more credit, Tapia obtained the financial account information of a hotel. Tapia withdrew approximately $45,000 from bank accounts owned by the hotel, which he used to pay down the account balances of the victim businesses at the home improvement store. Tapia also posed as an employee of the hotel to open an account at a phone store in Fullerton, Maryland, then charged approximately $2,800 against that account, which was billed to the victim hotel.</p>
<p>Finally, Tapia gained access to Verizon account information of employees at a university in Baltimore, which he used to obtain approximately $9,199 in smartphones, and other goods and services.</p>
<p>The total actual loss to the victims as a result of Tapia’s fraudulent activities was $132,548.85.</p>
<p>The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information and protect citizens from identity theft.</p>
<p>Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since the fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit <a href="http://www.stopfraud.gov/"><u>www.StopFraud.gov</u></a>.</p>
<p>United States Attorney Rod J. Rosenstein commended the U.S. Secret Service &#8211; Baltimore Field Office and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.</p>
<p><a href="https://www.justice.gov/usao-md/pr/baltimore-fraudster-sentenced-five-years-federal-prison-bank-fraud-and-aggravated">Original PressReleases&#8230;</a></p>