Short Sale Fraud Increases Sentence of Tax Fraudster

Rachel Dollar —  July 19, 2017 — Leave a comment

Casey Padula, 48, Port Charlotte, Florida, was sentenced to 57 months in prison for conspiring to commit tax and bank fraud.

According to court records, Padula had a mortgage on his Port Charlotte, Florida home of approximately $1.5 million with Bank of America (BoA).  In 2012, he sent a letter to the bank stating that he could no longer repay his loan.  At the same time, Padula provided Robert Robinson III, 43, who acted as a nominee buyer, with more than $625,000 from his IPPI bank account in Belize to fund a short sale of Padula’s home. Padula and Robinson signed a contract, which falsely represented that the property was sold through an “arms-length transaction,” and agreed that Padula would not be permitted to remain in the property after the sale. Padula in fact never moved from his home and less than two months after the closing, Robinson conveyed it back to Padula by transferring ownership to one of Padula’s Belizean entities for $1. Robinson was also sentenced  to five years of probation for signing a false Form HUD-1 in connection with his role in the scheme.

Padula was also involved in a tax fraud scheme that used secret numbered bank accounts, foreign shell companies and phony deductions to hide millions and evade taxes, according to Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, who announced the sentence.

In addition to the term of prison imposed by U.S. District Court Judge Sherri Polster Chappell, Padula was ordered to serve three years of supervised release and to pay a fine of $100,000 and to pay restitution of $728,609 to the IRS and to BoA in the amount of $739,459.90. He was remanded into custody.

Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS CI, who conducted the investigation, and Assistant Chiefs Todd Ellinwood and Caryn Finley of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office of the Middle District of Florida for its assistance.

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Rachel Dollar

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