Former Head of Chamber of Commerce Named in Complaint Alleging False Statements on Loan Application

Stephanie Abbott —  May 17, 2022 — Leave a comment

Todd Ament, 57, Orange, California, the former president and CEO of the Anaheim Chamber of Commerce is expected to appear this afternoon in federal court after being charged with lying to a mortgage lender about his assets while seeking a loan for a $1.5 million home in the San Bernardino Mountains.

Ament was charged in a 99-page criminal complaint filed Monday afternoon in United States District Court with making false statements to a financial institution while seeking funding in late 2020 to purchase a second home, a five-bedroom residence in Big Bear City, California.

The affidavit in support of the criminal complaint outlines a plot in which Ament – with the assistance of a political consultant who was a partner at a national public relations firm – devised a scheme to launder proceeds intended for the Chamber through the PR firm into Ament’s bank account. This infusion of cash – which appears to have been a loan from the PR firm engineered by the political consultant – allegedly influenced the lender’s decision to fund the mortgage.

The scheme led to a series of wire transfers from the PR firm that ultimately gave Ament $205,000 and made it appear he had enough cash on hand to secure the home loan, according to the affidavit. Ament allegedly used some of that money for the down payment, and some was used to make an out-of-escrow payment to the seller. The affidavit states that Ament made a $200,000 payment directly to the seller in an apparent effort to reduce the sale price of the house, thus reducing property taxes and lowering the commission to the seller’s real estate agent, the affidavit states.

An investigation outlined in the affidavit revealed that Ament and the political consultant had a close relationship for several years, one that included leading a small group of Anaheim public officials, consultants and business leaders. That group –described by Ament and the political consultant as a “family” and a “cabal” – met regularly at “retreats” to allegedly exert influence over government operations in Anaheim, according to the affidavit.

Ament and the political consultant also allegedly devised a scheme to divert proceeds intended for the Chamber through the PR firm and into Ament’s personal bank account. The affidavit alleges that Ament and the political consultant schemed to defraud a cannabis company that had retained the political consultant to lobby for favorable cannabis-related legislation in Anaheim. The cannabis company paid $225,000 to the Chamber with the understanding that it would have access to a task force that crafted such legislation, but at least $31,000 of that money was paid directly to Ament without those payments being disclosed to the client, the affidavit alleges.

The charge of making false statements to a financial institution carries a statutory maximum sentence of 30 years in federal prison.

A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

The FBI and IRS Criminal Investigation are conducting the investigation in this matter.

Assistant United States Attorneys Daniel H. Ahn, Daniel S. Lim and Melissa S. Rabbani of the Santa Ana Branch Office are prosecuting this case.

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Man Sentenced to Prison for Quitclaim Deed Fraud

Stephanie Abbott —  May 10, 2022 — Leave a comment

Alireza Zamanizadeh, aka Ali Zamani, 63, Portland, Oregon was sentenced today to 18 months in federal prison and five years’ supervised release for using a residential property he did not own as collateral for obtaining a bank loan worth more than $316,000.

According to court documents, on or about February 17, 2017, Zamanizadeh filed a quitclaim deed in Deschutes County, Oregon transferring a residential property in Bend, Oregon to his business for one dollar without the property owner’s consent. A quitclaim deed is a document used to quickly transfer the ownership of real property from one party to another.

Zamanizadeh then used the property as collateral for obtaining a loan worth $316,092 from a mortgage lender and forged the property owner’s signature on a statement verifying the property transfer. Based on his false representations, the mortgage company approved the loan and transferred the funds to Zamanizadeh’s bank account. After Zamanizadeh defaulted on the loan, the true owner of the property purchased the property out of foreclosure for $400,000.

On June 14, 2021, Zamanizadeh was charged by criminal information with bank fraud and aggravated identity theft. On September 14, 2021, he pleaded guilty to bank fraud.

The court also ordered Zamanizadeh to pay $400,000 in restitution to the owner of the property.

U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.

This case was investigated by IRS-Criminal Investigation with assistance from the FBI. It was prosecuted by Katherine A. Rykken, Assistant U.S. Attorney for the District of Oregon.

 

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Leader of Mortgage Fraud Scheme Sentenced to Prison

Stephanie Abbott —  May 10, 2022 — Leave a comment

James Christopher Castle, 57, formerly of Petaluma, California was sentenced today to 15 years in prison for a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales.

According to evidence at trial, in May 2020, Castle was extradited to the United States from Australia. Castle had fled to New Zealand and then Australia in 2011 when it became clear that his scheme was unraveling. After a three-year extradition process, Castle was transported back to the United States by the U.S. Marshals Service to stand trial in the United States.

Between April 22, 2010, and November 18, 2011, Castle was the leader of a conspiracy that ran a “mortgage elimination program” that purported to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.

As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators told the homeowners that these entities would offer protection against the banks.

Castle directed other co-conspirators in all aspects of the mortgage elimination program, including recruiting homeowners into the scheme, marshaling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Castle would cause a sham deed of trust to be created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.

The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.

With title appearing to be clear, the conspirators caused the sale of the home and split the proceeds between the co-conspirators and the homeowners.

In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes but were unable to sell these before the scheme unraveled.

On Aug. 2, 2021, a jury found Castle guilty of 35 counts of bank fraud.

U.S. Attorney Phillip A. Talbert made the announcement.

Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, 65, formerly of Oceanside, California pleaded guilty to one count of falsely making writings of lending associations and was sentenced to six years in prison. On May 26, 2017, Michael Romano, 75, Benicia, California pleaded guilty to conspiracy and was sentenced to three years in prison. On July 14, 2017, Laura Pezzi, Roseville, California pleaded guilty to falsely making writings of lending associations and was sentenced to time served.

In related cases, on September 4, 2015, Tisha Trites and Todd Smith, both of San Diego, California pleaded guilty to related charges. Trites is scheduled to be sentenced on June 14, 2022, and Smith was sentenced to two years in prison.

Two other co-defendants, George B. Larsen, 60, San Rafael, California and Larry Todt, 70, Malibu, California were convicted of conspiracy and bank fraud following a jury trial in December 2017. Larsen was sentenced to 10 years in prison, and Todt was sentenced to 7 years and three months in prison.

Co-defendant John Michael DiChiara passed away on August 24, 2019, while awaiting trial.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.

 

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Man Pleads Guilty in a Real Estate Scam Involving Fake Open Houses at Not-for-Sale Homes

Stephanie Abbott —  May 2, 2022 — Leave a comment

Adolfo Schoneke, 44, Torrance, California  pleaded guilty today to a federal criminal charge for participating with his sister in a $6 million real estate scam that involved listing homes without the owners’ consent and collecting money from multiple would-be buyers for each of the not-for-sale homes.

On April 4, 2020, Schoneke’s sister, Bianca Gonzalez, 39, a.k.a. Blanca Schoneke, pleaded guilty to the same criminal charge.

According to court papers, from November 2013 to December 2016, Schoneke and Gonzalez, along with co-conspirators, operated real estate and escrow companies based in Cerritos, La Palma and Long Beach, California under a variety of names, including MCR and West Coast Realty Services. Schoneke, Gonzalez and other co-conspirators found properties that they would list for sale – even though they did not intend to sell them to anyone.

The properties were listed on real estate websites such as the Multiple Listing Service (MLS) and were marketed as below-market short sales opportunities. In some cases, the homes were marketed through open houses arranged by tricking homeowners into allowing their homes to be used.

Multiple offers were accepted for each of the not-for-sale properties, but the co-conspirators hid this fact from the victims and instead led each victim to believe that his or her offer was the only one accepted. The co-conspirators strung victims along – sometimes for years – by telling them closings were being delayed because lenders needed to approve the purported short sales.

At the co-conspirators’ direction, office workers opened bank accounts to hide the co-conspirators’ involvement in the fraud. Those accounts were used to receive down payments on the homes and other payments from victims who were convinced to transfer the full “purchase price” after receiving forged short sale approval letters. The co-conspirators directed the office workers to withdraw large amounts of cash from these accounts, which made the proceeds harder to trace.

Investigators estimate that several hundred victims collectively lost more than $6 million during the scheme.

A co-conspirator, Mario Gonzalez, 50, was charged in a related case and pleaded guilty in January 2019 to conspiracy to commit wire fraud. His sentencing is scheduled for October 3, 2022.

Adolfo Schoneke pleaded guilty to one count of conspiracy to commit wire fraud and Bianca Gonzalez’s sentencing hearing is scheduled for October 3, 2022.

United States District Judge R. Gary Klausner has scheduled an August 8,2022 sentencing hearing, at which time Schoneke will face a statutory maximum sentence of 20 years in federal prison.

The FBI and the Federal Deposit Insurance Corporation, Office of Inspector General investigated this matter. The investigation was initiated by numerous complaints to the Long Beach Police Department and the Los Angeles County Sheriff’s Department, both of which provided substantial assistance during the federal investigation.

Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting this case.

 

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Man Admits to Making False Reports and Statements to and for HUD

Stephanie Abbott —  April 19, 2022 — Leave a comment

Shenandoah Adams Sr., aka “Shane Adams Sr.,” 56, New Providence, New Jersey, today admitted committing wire fraud and making false reports and statements to and for the U.S. Department of Housing and Urban Development (HUD), U.S.

According to documents filed in this case and statements made in court:

Adams was a principal of Adams Property Management and Investment Group LLC (Adams Property Management), which purchased property on Hilton Street, East Orange, New Jersey in 2014. The following year, Adams arranged for a close associate to obtain a $153,562 loan from a mortgage lender to purchase the Hilton Street property from Adams Property Management. After the associate’s mortgage payments on the Hilton Street property became substantially in arrears, Adams arranged for the associate to sell the property to another associate for $255,000. The closing on that sale commenced on May 31, 2016; as of that date, the total amount to pay off the first associate’s mortgage was $210,565, including interest and fees. On June 1, 2016, Adams and the first associate had a telephone conversation with the mortgage servicer for the associate’s lender, during which Adams made false and fraudulent statements to induce the lender to reduce the payoff amount. The lender agreed to reduce the associate’s payoff amount to $190,000. At Adams’s direction, the associate cashed the check for the amount of the reduction – $20,665 – and delivered the cash proceeds to Adams.

Adams also was a principal of VH Electrical and Plumbing LLC.  On March 11, 2015, Adams, on behalf of VH, entered into a contract with the Orange Public Library to replace the Library’s HVAC/chiller unit for $49,000. The project was funded by a HUD Community Development Block Grant to the library and Orange. Adams sent a library representative documentation to give the false impression that Adams was taking steps to order a replacement chiller. Adams received $40,000 from the library, but did not replace the library’s chiller.

The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a maximum $250,000 fine. The charge of making false reports and statements to HUD carries a maximum potential penalty of one year in prison and a maximum potential fine of $100,000. Sentencing is scheduled for Sept. 29, 2022.

Adams Sr. pleaded guilty before U.S. District Judge Esther Salas to one count of an indictment charging him with wire fraud and an information charging him with one count of making false reports and statements to and for HUD.

Attorney Philip R. Sellinger made the announcement.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Cari Fais, Chief of the Opioid Abuse Prevention and Enforcement Unit, and Assistant U.S. Attorneys J Fortier Imbert and Sara F. Merin of the U.S. Attorney’s Office’s Special Prosecutions Division.

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Escrow Manager Arraigned on Charges of Wire fraud and Illegal Transactions

Stephanie Abbott —  April 5, 2022 — Leave a comment

Christopher Adam Jensen-Tanner, 43, Roswell, New Mexico, was arraigned in federal court today on a 38-count indictment charging him with 34 counts of wire fraud and four counts of engaging in monetary transactions in property derived from specified unlawful activity.

According to the indictment and other court records, Jensen-Tanner allegedly used his position and access as owner and president of Roswell Escrow Services, Inc. (RES) to fraudulently redirect customer funds for his personal benefit.

RES served both as a qualified intermediary and as a servicer for real estate contracts. As a qualified intermediary, RES held proceeds from property sales in trust for clients for a period of up to 180 days, during which time the clients could use the funds to purchase a like-in-kind property and not incur capital gains. As a real estate contract servicer, RES received monthly payments from property buyers, taking a portion of the payment to cover insurance, property taxes, and fees. Ordinarily, such funds would be segregated through numerous bank accounts based on the nature and purpose of the funds, and occasionally further delineated by individual clients.

On or before January 11, 2017, Jensen-Tanner allegedly began commingling funds within the RES corporate accounts by moving funds held in trust to operating accounts and vice-versa, contrary to established best practices of the industry. From around January 11, 2017, to October 23, 2019, Jensen-Tanner allegedly made several personal purchases for himself directly from RES corporate accounts. During that same period, Jensen-Tanner allegedly transferred funds from RES corporate accounts at Wells Fargo bank to a holding account for Wells Fargo certified funds tied to Wells Fargo cashier’s checks. Jensen-Tanner then allegedly transferred those certified funds to pay for personal expenses, either directly or via his personal checking account.

The extent of the fraud was in excess of $2 million.

Jensen-Tanner is subject to conditions of release pending trial, which has not been scheduled.

An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Jensen-Tanner faces up to 20 years in prison for each count of wire fraud and up to 10 years in prison for each count of engaging in monetary transactions in property derived from specified unlawful activity.

The FBI and IRS Criminal Investigation are investigating this case with assistance from the Securities and Financial Institutions Divisions of the New Mexico Regulation and Licensing Department. Assistant United States Attorneys Ry Ellison and Richard Williams are prosecuting the case.

The FBI is seeking other potential fraud victims in this case. Anyone who was a customer of RES and believes they were the victim of fraud is asked to contact the FBI at 1-800-CALL-FBI or go online to tips.fbi.gov.

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Short Sale Negotiator Sentenced for Defrauding Mortgage Lenders

Stephanie Abbott —  March 30, 2022 — Leave a comment

Gabriel T. Tavarez, 40, Westminster, Massachusetts, he principal and co-founder of a mortgage short sale assistance company was sentenced yesterday in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions.

Tavarez founded and co-operated Loss Mitigation Services, LLC, a short sale assistance company in North Andover, Massachusetts,  with co-conspirator Jaime L. Mulvihill. A short sale occurs where a mortgage debt on a home is greater than the home’s market value—such a mortgage loan is commonly referred to as being “under water”—and a mortgage lender agrees to a sale of the home even though it will take a loss on the transaction. Loss Mitigation Services, purportedly acting on behalf of homeowners whose mortgage loans were under water, negotiated with mortgage lenders for approval of short sales in lieu of foreclosure. Mortgage lenders typically forbid short sale negotiators, such as Loss Mitigation Services, from receiving any proceeds of a short sale.

From 2014 to 2017, Tavarez and Mulvihill, directly or through their employees, falsely claimed to homeowners, real estate agents and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as “seller paid closing costs” or “seller concessions” from the proceeds of the short sales. In reality, the mortgage lenders had never approved Loss Mitigation Services to receive such fees. When the short sales closed, at the instruction of Tavarez, Mulvihill, or others working with them, settlement agents paid Loss Mitigation Services the fees, which typically were 3% of the short sale price above and beyond any fees to real estate agents, closing attorneys and others involved in the transaction. To deceive mortgage lenders about the true nature of the fees, Tavarez or Mulvihill filed, or caused others to file, false short sale transaction documents with mortgage lenders, including altered settlement statements and fabricated contracts and mortgage loan preapproval letters. In addition, Tavarez created, or directed others to create, fake letters from mortgage brokers claiming that the brokers had approved buyers for financing, in order to convince mortgage lenders to approve the additional fees.

Mulvihill pleaded guilty to his role in the conspiracy and was sentenced in February 2020 to six months in prison.

Tavarez was sentenced by U.S. District Court Judge Nathaniel M. Gorton to seven months in prison and two years of supervised release. Tavarez was also ordered to pay restitution in the amount of $475,458. In June 2020, Tavarez pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Robert Manchak, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Brian M. LaMacchia of Rollins’ Affirmative Civil Enforcement Unit prosecuted the case.

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Duo Charged in Multi-Layered Fraud Scheme

Stephanie Abbott —  March 23, 2022 — Leave a comment

Steven Tetsuya Morizono, 59, Mission Viejo, California, and Albert Lugene Lim, 53, Laguna Niguel, California, a ringleader and his brother-in-law have been indicted for their participation in a multi-state scheme involving mortgage fraud, credit repair and government loan fraud.

The indictment remains sealed to others charged but not as yet in custody.

The 33-count indictment, returned March 16,2022 alleges Morizono and Lim led the conspiracy. Using the alias Jeff, Morizono was the leader and namesake for the scheme purporting to do business as Jeff Funding, according to the charges. In reality, Jeff funding allegedly operated a multi-layered scheme to defraud mortgage lending businesses, banks, Small Business Administration (SBA) and Federal Trade Commission (FTC).

The indictment alleges co-conspirators recruited clients for credit repair using company names of KMD Credit, KMD Capital and Jeff Funding, among others. They allegedly “cleaned” their clients’ credit histories by filing false identity theft reports with the FTC. After fraudulently inflating client credit worthiness, the co-conspirators fraudulently obtain credit cards, disaster loans and mortgages for themselves and their clients, according to the charges. They were allegedly able to accomplish this through false statements and fake documents.

Morizono and his crew maintained control of the properties purchased in their clients’ names, according to the charges. The purpose, the indictment alleges, was for the purpose of building a real estate portfolio worth millions of dollars and enriching themselves with rental income.

If convicted, Morizono and Lim face up to 30 years in federal prison and a possible $1 million maximum fine.

They are set for an arraignment before U.S. Magistrate Judge Sam S. Sheldon today at 2 p.m.

Two others – Heather Ann Campos, 43, and David Lewis Best Jr., 58, both of Houston –  are fugitives with warrants remain outstanding for their arrest. Anyone with information about their whereabouts is asked to contact the U.S. Postal Inspection Service at 281-512-8525.

The announcement was made by U.S. Attorney Jennifer B. Lowery.

The Federal Housing Finance Agency – Office of Inspector General (OIG), U.S. Postal Inspection Service, Housing and Urban Development – OIG and SBA – OIG conducted the investigation with the assistance of the FTC – OIG and IRS – Criminal Investigation. Assistant U.S. Attorneys Kate Suh and Jay Hileman are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

 

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Brothers Charged for Alleged Bank Fraud in the Purchase & Sale of Two Properties

Stephanie Abbott —  March 23, 2022 — Leave a comment

Philip Abramowitz, 50, Pikesville, Maryland, has been charged with bank fraud and conspiracy to commit bank fraud and Calvin Abramowitz, 48, Lakewood, New Jersey, has been charges with conspiracy to commit bank fraud, bank fraud, and for making false statements on a loan application.

According to the four-count indictment, from May 2016 to April 2017, Philip and Calvin Abramowitz conspired to defraud two financial institutions to obtain money and property under fraudulent pretenses.  Allegedly, Philip, Calvin Abramowitz, as well as others submitted mortgage applications totaling $535,448 to fund the purchase of two Baltimore, Maryland properties.  Allegedly, the loan applications contained false information that misrepresented the financing of the purchases and the ownership interests and intentions of the involved parties.

As alleged in the indictment, Philip Abramowitz instructed family members to apply for and receive Federal Housing Administration loans in their names in order to finance the purchase of two of his Baltimore properties.  Further, the indictment alleges that Philip and Calvin Abramowitz concealed Philip Abramowitz’s involvement in the real estate transactions and submitted false bank records and company filings during the loan application process to conceal the buyers’ and sellers’ familial relation.

Further, the indictment alleges that Philip Abramowitz falsified LLC records to create the illusion that his property manager was the sole owner of the selling entity in both property transactions and instructed his property manager to sign all closing documents as the “seller” to finalize the sales and the disbursement of loan proceeds.  In addition, the indictment alleges that Philip Abramowitz provided funds to Calvin Abramowitz to cover Calvin Abramowitz’s and another family members closing costs for both properties.

If convicted, Philip Abramowitz faces a maximum sentence of 30 years in federal prison for bank fraud and 30 years in federal prison for conspiracy to commit bank fraud.  If convicted, Calvin Abramowitz faces a maximum sentence of 30 years for bank fraud, a maximum of 30 years for conspiracy to commit bank fraud, and 30 in federal prison for making false statements on a loan application.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The defendants will have initial appearances on March 24, 2022, beginning at 1:30 p.m., in U.S. District Court in Baltimore before U.S. Magistrate Judge Coulson.

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development Office of Inspector General.

 

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

United States Attorney Erek L. Barron commended HUD-OIG for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorney Martin Clarke, who is prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https:

 

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Disbarred Attorney Sentenced Conspiring To Commit Foreclosure Fraud

Stephanie Abbott —  March 18, 2022 — Leave a comment

James Lee Clark ,61, Wilton Manors, Florida has been sentenced to 48 months in federal prison for conspiracy to commit bankruptcy fraud and wire fraud.

According to court documents, from January 2010 through February 2017, Clark, who was a licensed attorney, conspired with his paralegal, Eric Liebman, to defraud mortgage creditors and guarantors holding notes on properties in foreclosure. Clark and Liebman falsely and fraudulently represented to distressed homeowners that they would negotiate with creditors and guarantors to prevent foreclosures in exchange for the homeowners’ execution of quitclaim or warranty deeds for the properties to an entity controlled by Liebman. Clark and Liebman also convinced the homeowners to pay rent or agree to sell their houses.  In order to continue collecting ill-gotten rents and/or profit from the property sales, Clark filed fraudulent bankruptcy petitions in the names of the homeowners to prevent the mortgage creditors from lawfully foreclosing and taking title to the properties.

Additionally, from January 2012 to February 2017, Clark defrauded his clients out of approximately $1.3 million. As part of his practice, Clark acted as a trustee for clients and held their money in various bank accounts.  Instead of using the funds for the purpose intended by his clients, Clark diverted the money into his law firm’s bank accounts, and used it for personal expenses, like gambling, travel, and automobiles.

Liebman previously pleaded guilty to conspiracy to commit bankruptcy fraud. He was sentenced to 15 months’ imprisonment.

Clark had pleaded guilty on December 14, 2021.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation. The Office of the United States Trustee for the Middle District of Florida (Tampa Division) provided substantial investigative support. It was prosecuted by Special Assistant United States Attorney Chris Poor.

 

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