Archives For deed fraud

Man Arraigned on Indictment Charging Him With Stealing $2 Million House

Stephanie Abbott —  February 18, 2025 — Leave a comment

Danny Noble, 55, Baldwin, New York, has been arraigned on an indictment in which he is charged with filing a deed purporting to be the rightful owner of a three-family house, valued at over $2 million, in Fort Greene, Brooklyn.

According to the indictment, between September 1, 2023, and September 15, 2023, the defendant falsely transferred the title to 71 Carlton Avenue, Fort Greene, Brooklyn a three-story house in Fort Greene valued at approximately $2,170,000.

The defendant allegedly filed a deed, recorded on September 15, 2023, in which he purported to be the rightful owner of 71 Carlton Avenue. He then allegedly initiated a quiet title action in Brooklyn Supreme Court, seeking a judicial order declaring him the rightful owner of the property. The actual owner, 71 Carlton LLC, learned of the fraudulent deed and contacted the Brooklyn DA’s Action Center in December 2024.

The property’s title was also illegally transferred in 2010.

As part of the 2023 scheme, it is alleged, the defendant filed false documents with the New York City Department of Finance, Office of the City Register, which maintains land records and other real property filings in New York City, including records relating to ownership and encumbrances, such as liens and mortgages.

Noble was arraigned today by Brooklyn Supreme Court Justice Danny Chun on an indictment in which he is charged with first-degree grand larceny, first-degree falsifying business records and first-degree offering a false instrument for filing. He was ordered held on $300,000 cash bail or $2.5 million bond, and to return to court on April 23, 2025.

Brooklyn District Attorney Eric Gonzalez made the announcement today.

District Attorney Gonzalez said, “Real estate fraud is a serious threat to homeowners, and in Brooklyn, we will not tolerate scammers who try to steal property through deception. This alleged scheme was uncovered thanks to the rightful owner’s vigilance, and we will now seek to hold the defendant accountable. Our Real Estate Fraud Unit is dedicated to protecting property owners, and we will continue to aggressively investigate and prosecute those who undermine the security of homeowners and the integrity of property ownership.”

The District Attorney offered the following tips to homeowners to protect themselves:

  • Make sure the NYC Dept. of Finance has the correct address to receive property notices.
  • Designate a trusted family member or friend to receive notices if you are unable.
  • Register with the NYC Department of Finance to receive automatic notifications regarding any changes to your deed or property records.
  • Never sign any contract you do not understand.
  • For more information visit http://brooklynda.org/deedfraud/

The District Attorney thanked KCDA Detective Investigators and Investigations Division
Intelligence Analyst Yacelys Corona for their assistance on the case.

The case is being prosecuted by Assistant District Attorney Richard Farrell, Chief of the District Attorney’s Real Estate Fraud Unit, under the supervision of Assistant District Attorney Gregory Pavlides, Chief of the District Attorney’s Frauds Bureau and Assistant District Attorney Michel Spanakos, Deputy Chief of the Investigations Division, and the overall supervision of Assistant District Attorney Patricia McNeill, Chief of the Investigations Division.

 

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Serial Fraudster Sentenced for Stealing Five Homes

Stephanie Abbott —  February 3, 2025 — Leave a comment

James Henley, 35, Greenwood, Indiana, has been sentenced to ten years in federal prison, followed by three years of supervised release after pleading guilty to aggravated identity theft, conspiracy to commit access device fraud, two counts of money laundering, and eight counts of wire fraud. Henley has also been ordered to pay $1,887,426.63 in restitution.

According to court documents, over the course of three years, Henley orchestrated multiple large and complex fraud schemes, resulting in a total loss of $2,927,758.95 to individual homeowners, an Indiana attorney, a bank, and ten state governments. As part of his fraud schemes, Henley registered five fake businesses (OnTrack Real Estate Solutions, LDI Investments Corp, Lucario Investments, 317 Traffic, and Henley Real Estate Solutions) with the states of Indiana and Kentucky, claiming to serve as the Chief Executive Officer for most of them. None of the businesses were legitimate. Instead, Henley used the businesses to mask his identity, make his schemes appear more credible, and launder the stolen money.

Henley’s schemes are broken down as follows:

Home Title Fraud:

Between December 2021 and May 2023, Henley stole five homes in Indianapolis by filing fraudulent deeds with the Marion County Recorder’s Office. Through the filings, Henley claimed that the homeowners had sold their homes to his fake businesses, but, in reality, he had never even spoken with the homeowners.  Unbeknownst to the victims, Henley filed these fraudulent deeds and then sold the homes for significantly less than their market value, pocketing more than $260,000 in profits.

Henley also attempted to steal and sell an additional 14 homes in Indianapolis and Evansville.  With one exception, the individuals who bought the homes from Henley took possession and ultimately kept the homes.

For one homeowner, the property Henley stole was her childhood home. She purchased the home while her mother was in the hospital with the hope that, when her mother’s condition improved, her mother would be able to live out her remaining years in the house.

Mortgage Fraud:

In November 2021, an associate of Henley’s purchased a home in Indianapolis, using a mortgage loan from a bank.  In April 2022, Henley filed a fraudulent document with the Marion County Recorder’s Office to make it seem as if the mortgage loan had been paid off, when it had not been paid. Henley then filed a deed naming himself a joint owner of the home. Henley and his associate subsequently sold the property for $255,000, pocketing all the proceeds, even though the bank should have received the majority of the funds.

COVID-19 Fraud:

Between May 2020 and March 2021, James Henley, his wife Jameka Henley, and his associate Jimmie Bickers used the stolen personally identifiable information of 76 real individuals to submit 120 unemployment insurance applications to ten states during the COVID-19 pandemic. Once the applications were approved, the trio used 65 unemployment insurance debit cards to make purchases at retailers and withdraw cash at ATMs in the Evansville and Indianapolis areas. The states paid a total of $1,119,426.63 in unemployment benefits in connection with the group’s fraudulent applications.  In July 2020, Henley used funds withdrawn from ATMs to buy a Chevrolet Camaro for $22,801.

Bickers and Jameka Henley have been formally charged for their roles in this scheme but have not pleaded guilty.

Auto Loan Fraud:

In March 2023, Henley purchased a Dodge Durango in Indianapolis for $71,479, using an auto loan from Everwise Credit Union. A few months later, in June 2023, Henley purchased a Chevrolet Silverado in Plainfield for $54,270, using a second loan from Everwise Credit Union.

In October 2023, Henley connected a JPMorgan Chase bank account to his auto loans, via Everwise’s online payment portal.  Henley falsely represented that the Chase account belonged to Jimmie Bickers, and that he had authority to make payments on his loans using funds from the Chase account.

The Chase account was actually an Indiana attorney’s Interest on Lawyers’ Trust Account (IOLTA), which is a highly regulated bank account used by lawyers to hold client funds.  The interest earned on IOLTA accounts is used to fund grants for nonprofit groups that promote pro bono and access to justice programs. Henley did not have the attorney’s permission to access or withdraw funds from the IOLTA account.

Between October and November 2023, Henley used the IOLTA account to make two payments, totaling $98,000, toward his auto loans.

Henley has prior felony convictions for financial crimes, including theft, forgery, and fraud.

“James Henley went to great lengths to coordinate exceptionally greedy, complex schemes that exploited hard-working families and state government programs,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “Undeterred by prior felony convictions for the same conduct, this defendant stole over a million dollars, wreaking financial and logistical havoc on hundreds of victims. The Department of Justice will continue to work with our law enforcement partners to investigate allegations of fraud and seek prosecution as appropriate.”

“James Henley filed fraudulent unemployment insurance (UI) claims in the names of identity theft victims in order to receive UI benefits to which he was not entitled. He enriched himself by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to protecting the integrity of the UI system from those who seek to exploit this critical benefit program.”

“This lengthy prison sentence sends a clear message: individuals who attempt to exploit and commit financial crime and identity theft will be brought to justice,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “IRS Criminal Investigation and our fellow law enforcement partners are committed to protecting the integrity of our financial institutions and will continue to hold criminals like James Henley accountable to the fullest extent of the law.”

“This case should serve as a powerful reminder that individuals with a history of financial crimes will face significant consequences when they demonstrate a blatant disregard for the law and continue to exploit and deceive others for personal gain,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI, working alongside our law enforcement partners, will continue to hold those who perpetuate such offenses accountable and protect the public from those who manipulate the system for their own benefit.”

The Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Department of Labor-Office of the Inspector General, and the Indiana Attorney General’s Office Homeowner Protection Unit investigated this case. The sentence was imposed by U.S. District Judge Matthew B. Brookman.

Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Matthew Miller, who prosecuted this case.

On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

Anyone with information about allegations of attempted fraud involving COVID‑19  can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

 

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Local Non-Profit Director Charged in Pernicious “Deed Fraud” Scheme

Stephanie Abbott —  February 28, 2024 — Leave a comment

Zina Thomas, 60, Detroit, Michigan, was charged in a criminal complaint filed in United States District Court for her role orchestrating a fraud scheme that stole houses from dozens of Detroit residents.

The complaint charges Thomas with conspiracy to commit wire fraud, wire fraud, money laundering, and aggravated identity theft. Thomas was arrested today.

According to the complaint, Thomas, while serving as the Director of Homeownership Programs for the United Community Housing Coalition (UCHC), conspired with other individuals to steal over 30 properties across Wayne County, predominately located in the City of Detroit.  The complaint alleges that Thomas and others perpetrated a scheme to defraud by filing multiple fraudulent quitclaim deeds, frequently transferring the target properties from the victim-owners to non-existent “interim owners” before ultimately selling the properties to unwitting third parties.  It is also alleged that these fraudulent deeds were falsely notarized by Thomas or another person, which made them appear legitimate and thus enabled them to be filed with the Register of Deeds. The complaint also alleges that Thomas emailed a Wayne County Treasurer’s Office employee fake driver’s licenses and other documents, which were then uploaded into the Treasurer’s Property Tax Administration system to halt pending foreclosures.  According to the complaint, Thomas received payment for at least some of the properties via wire transfer into a bank account in the name of her realty company, and Thomas then transferred proceeds from that account to her personal bank account. And the scheme targeted low-income individuals who were facing potential tax foreclosure. According to the complaint, Thomas currently resides in one of the properties involved in the scheme.

The United Community Housing Coalition (UCHC), is a 501(c)(3) nonprofit organization providing housing assistance to Detroit’s low-income residents.  The UCHC and its executive leadership cooperated with the investigation.

United States Attorney Dawn N. Ison made the announcement.

Ison was joined in the announcement by Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation; Special Agent-in-Charge Machelle L. Jindra, Department of Housing and Urban Development Office of Inspector General; Detroit Police Chief James E. White; and Wayne County Register of Deeds Bernard J. Youngblood.

United States Attorney Ison stated, “This scheme targeted some of our most financially vulnerable citizens and was perpetrated by an individual whose job it was to help those very people avoid losing their homes to foreclosure. This arrest is the result of a multi-agency, cooperative investigation involving both federal and state law enforcement, and is reflective of our ongoing efforts to identify and disrupt fraud schemes like this as quickly as possible.”

“While working in a capacity to provide assistance to residents experiencing financial hardships, Ms. Thomas allegedly exploited individuals in the process of losing their homes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI and its law enforcement partners will continue to investigate these reprehensible acts of fraud.”

“Thomas allegedly abused her position to help fraudulently sell properties facing tax foreclosure for her own personal gain,” said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development Office of Inspector General.  “HUD OIG will continue to work with its law enforcement partners to bring bad actors to justice and protect the integrity of HUD housing programs.”

“I want to thank U.S. Attorney Dawn N. Ison for her continued collaboration to ensure that those who victimize Detroit residents face the fullest consequences of the law,” said Detroit Police Chief James E. White. “The DPD remains committed to addressing all aspects of crime and working with our partners across law enforcement to keep Detroiters safe.”

“A rash of incoming complaints to my Deed Fraud Task Force, followed with methodical investigative teamwork, culminated in today’s announcement,” said Wayne County Register of Deeds Bernard J. Youngblood.  “Wayne County is the national leader in combating this new crimewave and we are proud to partner with local, state and federal law enforcement to protect the property rights of our citizens.”

A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.

This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development Office of the Inspector General, and the Detroit Police Department.  Significant investigative assistance was provided by the Wayne County Register of Deeds’ Mortgage & Deed Fraud Unit.  The case is being prosecuted by Assistant United States Attorney Ryan A. Particka.

 

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CON MEN & CORPORATION PLEAD GUILTY IN DEED FRAUD SCHEME

Stephanie Abbott —  December 27, 2023 — Leave a comment

Russell Carbone, 69, Queens, New York, and Terrell Hill, 40, Long Island, New York, pleaded guilty to a wide-ranging scheme to steal residential properties by filing forged deeds with city officials.

Carbone and Hill, pleaded guilty to scheme to defraud in the first degree and six counts of offering a false instrument for filing in the first degree. RC Couture Realty Inc., a corporation run by Carbone and his wife, Galyna Couture, 61, pleaded guilty to criminal possession of stolen property in the first degree and six counts of offering a false instrument for filing in the first degree.

Carbone and Hill worked together to target homes where the owners died and their heirs had not taken title to them. To help find the properties, Hill, a landscaper, would alert Carbone, a disbarred attorney, to homes that appeared abandoned. Most turned out to have gone into foreclosure.

As part of the plea, the court voided deeds to seven homes in Queens and two in Nassau County, New York so they could be returned to their rightful owners.

In addition to forfeiting the ill-gotten deeds, Carbone will pay $56,960 in restitution. The money represents rent payments he collected after illegally taking over properties and leasing them out. The money will go to the heirs of the legitimate property owners. Carbone’s license as a notary was also revoked.

R.C. Couture Realty must pay a $100,000 fine.

Hill is also expected to face up to three years in prison when he is sentenced on January 30, 2024.

The Queens homes stolen were located on 116th Road, 115th Avenue, 148th Street and 192nd Street in Jamaica; on 131st Avenue in Laurelton Gardens; and on 104th Avenue and 192nd Street in St. Albans.

In Nassau County, the homes were on Pinebrook Avenue in West Hempstead and Advent Street in Westbury.

In some instances, the deeds were transferred more than once among the defendants and entities connected to them, resulting in 14 deeds for nine homes.

In two additional cases that were part of the charged scheme to defraud, Carbone and Hill had already agreed to relinquish deeds to the legitimate owners.

And in another case, the duo had already sold a home on 148th Street in Jamaica to a third party. The District Attorney’s office will file a motion to apply a state statute and restore that deed to its rightful owner, sparing the victim the time and expense of additional legal proceedings in civil court.

According to the charges and plea agreements:

  • Between November 8, 2019, and February 14, 2023, Hill and Carbone forged signatures on property records to transfer to themselves the ownership of multiple properties.
  • The signatures were notarized with fraudulent notary stamps that Hill ordered from Amazon in the names of actual notaries. Carbone also used his own, legitimate notary stamp on some documents.
  • The fraudulent documents were filed with the New York City Department of Finance.

In the case of the home on 116th Road in Jamaica, Hill called a Bronx woman in November 2019 about possibly selling the house, which she had inherited with her brother. Following the phone conversation, Hill introduced the victim to his “business partner,” Carbone, who met the woman at a local coffee shop to discuss the sale. The woman declined the purchase offer.

A deed transferring title to the property was filed nonetheless on March 12, 2021, indicating that RC Couture Realty, Inc. and Terrell Hill each owned a 48% interest in the property and the victim and her sibling each owned a 1% share.

Hill and Carbone forged the siblings’ signatures on the deed transfer documents, which were stamped with a fraudulent notary stamp and Carbone’s legitimate stamp.

The actual notary told investigators that the stamp was not hers. Hill’s Amazon records showed he ordered a notary stamp with this notary’s information and had it shipped to his home in West Hempstead.

In another case, a 2021 deed transfer for a home on Sutter Avenue in Jamaica included the purported signature of an heir to the property’s original owner. The document said the home was transferred to Carbone and Hill with the heir retaining 1% ownership.

The heir said he did not sign the document. The notary whose stamp is on the paperwork also said he did not sign, nor stamp, the document. Hill’s Amazon records showed another purchase shipped to his home in West Hempstead for a notary stamp with this notary’s information as well.

A nephew of the property’s original owner was living in the home and Carbone wrote to him, portraying himself as the new owner trying to “make a deal” to get him to leave. Carbone then started eviction proceedings against him.

Facing a civil lawsuit, Hill and Carbone agreed to void the deed, returning the home to the rightful owner.

Queens District Attorney Melinda Katz made the announcement.

District Attorney Katz said: “When I started the Housing and Worker Protection Bureau three years ago, I promised to protect homeowners from predatory real estate scams that often target vulnerable neighborhoods. Since then, we have undone the criminal handiwork of scammers and con artists and pioneered the use of a state statute to return stolen properties to their rightful owners. With the conclusion of this prosecution, the largest we have undertaken so far, our office will have restored a total of 14 homes to their rightful owners.”

Assistant District Attorney Rachel Stein, Chief of the Real Estate Theft Unit, in the District Attorney’s Housing and Worker Protection Bureau prosecuted the case under the supervision of Assistant District Attorneys William Jorgenson, Bureau Chief, and Christina Hanophy, Deputy Bureau Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Gerard A. Brave.

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Man Indicted for Stealing $925,000 Through Deed Fraud

Stephanie Abbott —  October 13, 2023 — Leave a comment

Salome Vega, 46, of Hempstead, New York., was arraigned today on an indictment in which he is charged with grand larceny for allegedly fraudulently transferring the titles of a property in Brooklyn and a property in the Bronx, New York (where Lindbergh baby kidnapper Bruno Richard Hauptmann once resided) and selling them for a total of approximately $925,000. It is alleged the defendant went to elaborate lengths to perpetrate the two separate frauds, including using a variety of fraudulent documents and, in one case, had someone else impersonate a deceased Bronx homeowner at a closing. The defendant also allegedly attempted to steal nearly $300,000 in COVID-19 tax relief payments.

According to the investigation, on August 6, 2019, the defendant allegedly sold the title to 1279 East 222nd Street, a two-family house in the Bronx, New York. At the closing, which was held at an office in Midwood, Brooklyn, the defendant had someone impersonate the property’s deceased owner when the defendant fraudulently sold the house to a buyer for $250,000. Bruno Richard Hauptmann, who was convicted of kidnapping Charles Lindbergh Jr., once resided in that East 222nd Street house.

Furthermore, according to the investigation, six days later, on August 12, 2019, the defendant opened a business checking account for an entity with the same name as the decedent. On the same day, he allegedly deposited a $242,828 check from the sale of 1279 East 222nd Street into the account. Over the next two months, the defendant allegedly emptied the account.

The title transfer was subsequently vacated by the Bronx County Public Administrator when it was discovered that the property owner of 1279 East 222nd Street died on April 26, 2019, approximately four months before the closing.

Furthermore, according to the investigation, in February 2023, the defendant fraudulently sold 431-435 Autumn Avenue, which includes a two-family house attached to a vacant lot in East New York, Brooklyn, for $675,000. It is alleged the defendant did this by pretending to be the CEO of Merit Homes Inc., which owned the property. The defendant was not associated with Merit Homes Inc., nor was he authorized to sell the property. According to the investigation, the defendant, at the closing, requested that funds from the sale be made payable to him personally in amounts of $100,000, $200,000, $300,000, and $33,772 (the remainder of the funds went to closing costs). The defendant proceeded to cash the payments at various check cashing stores in Queens and Long Island.

It is also alleged that the defendant opened a fraudulent business account for a surveillance company on February 9, 2023. The following day, on February 10, 2023, the defendant, according to the investigation, caused a COVID-19 tax relief check from the IRS for $297,368.51 intended for the company to be deposited into this account at a TD Bank branch in Bay Ridge, Brooklyn. An alert bank employee spotted the fraud and froze the account before any funds could be withdrawn.

The defendant was arraigned today before Brooklyn Supreme Court Justice Danny Chun on an indictment in which he was charged with two counts of second-degree grand larceny, second-degree criminal impersonation, and second-degree attempted grand-larceny. The defendant was ordered to return to court on December 6, 2023.

Brooklyn District Attorney Eric Gonzalez made the anoouncement.

District Attorney Gonzalez said, “This defendant allegedly filled his pockets with the ill-gotten gains of two separate real estate transactions in which he stole – then sold – the titles to two New York City properties while also attempting to steal hundreds of thousands of dollars in COVID-19 tax relief funds. We will now seek to hold the defendant accountable and will continue to vigorously investigate and prosecute deed fraud.”

The District Attorney thanked the KCDA Detective Investigators for their assistance on this case.

The case is being prosecuted by Senior Assistant District Attorney Sergey Marts, of the District Attorney’s Frauds Bureau, and Assistant District Attorney Frank Longobardi, Chief of the District Attorney’s Construction Crimes and Labor Fraud Unit, under the supervision of Assistant District Attorney Richard Farrell, Chief of the District Attorney’s Real Estate Fraud Unit and Assistant District Attorney Gregory Pavlides, Chief of the Frauds Bureau, and the overall supervision of Assistant District Attorney Michel Spanakos, Deputy Chief of the Investigations Division and Assistant District Attorney Patricia McNeill, Chief of the Investigations Division.

 

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Third Defendant Pleads Guilty in Conspiracy to Steal USDA-Mortgaged Houses

Stephanie Abbott —  May 22, 2023 — Leave a comment

Ella Martin, 69, Jayess, Mississippi, pleaded guilty to conspiring to steal houses from the United States Department of Agriculture.

According to court documents, conspired with others to identify and steal USDA-mortgaged properties. The targeted properties were mortgaged through the Brookhaven office of USDA Rural Development, an agency which helps rural residents buy or rent safe, affordable housing, especially low and very-low income individuals. As an employee of that office, Martin had access to a list of abandoned, foreclosed, nearly-foreclosed, or similarly distressed USDA-mortgaged properties and would create fraudulent warranty deeds designed to convey ownership of those properties to co-conspirators and others. The fraudulent deeds included forged signatures from former homeowners, including at least one deceased individual. The fraudulent deeds were then filed in Chancery Courts around Mississippi with the intent to deprive the actual owners of the use and benefit of the properties and to deprive the United States Government of the actual value of the properties.

Martin pleaded guilty to a violation of Title 18, United States Code, Section 371, which criminalizes conspiracies against the laws of the United States. She is scheduled to be sentenced on September 19, 2023 and faces a maximum penalty of five years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Co-defendants Barry Martin and Fiesta Kagler entered guilty pleas last year and are scheduled to be sentenced on June 15, 2023.

The USDA OIG and the Federal Bureau of Investigation investigated the case.

U.S. Attorney Darren J. LaMarca and Special Agent in Charge Dax Roberson of United States Department of Agriculture, Office of the Inspector General made the announcement.

Assistant U.S. Attorney Kimberly T. Purdie is prosecuting the case.

 

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Duo Indicted on Federal Charges in Real Estate Scheme

Stephanie Abbott —  November 29, 2021 — Leave a comment

Jeffrey M. Young-Bey, 65, Washington, District of Columbia, and Martina Yolanda Jones, 44, Baltimore, Maryland, were indicted earlier this month for a scheme in which they allegedly used fraudulent property deeds to steal residential real estate property in the District of Columbia

As alleged in the indictment, beginning at least as early as November 2019, Young-Bey and Jones conspired to steal real estate and obtain a loan against the property or sell the property for profit. Specifically, the indictment states, Young-Bey identified a target property located in the District of Columbia. Young-Bey then prepared a fraudulent property deed, including forged signatures of the true owners.  Young-Bey filed the deed with the District of Columbia Recorder of Deeds, transferring the title from the true owners to a corporate entity controlled by Young-Bey or Jones.  The residential real estate property was then encumbered or sold through means of materially false and fraudulent pretenses, representations, and promises.

As a result of the scheme, the indictment alleges, Jones and Young-Bey obtained $323,224 from a fraudulent loan taken out on one property.

In addition, according to the indictment, Young-Bey received $268,036 from the sale of a second property in the District of Columbia that he allegedly stole and sold through the same scheme.  With these fraudulent proceeds, the indictment alleges, Young-Bey purchased a 2020 BMW 750XI worth over $106,000 and a 2016 BMW 328XI worth over $21,000.

All told, the indictment alleges, the scheme generated more than $500,000 in illegal proceeds.

In connection with Young-Bey’s activity, the Government has seized $269,239, as well as the 2020 BMW 750XI.

The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.

Young-Bey was arrested on November 22, 2021, and Jones was arrested on November 27, 2021. Both have made their initial appearances in the U.S. District Court for the District of Columbia.

Young-Bey was arrested on Nov. 22, 2021, and Jones was arrested on Nov. 27, 2021. Both have made their initial appearances in the U.S. District Court for the District of Columbia.

An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.

This case is being investigated by the FBI’s Washington Field Office.  It is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein and Special Assistant U.S. Attorney Viviana Vasiu, both from the Fraud Section of the U.S. Attorney’s Office for the District of Columbia.

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Man Pleads Guilty to Theft Charge in Unemployment Mortgage Assistance Program

Stephanie Abbott —  July 9, 2021 — Leave a comment

Robert Charles Sneed, 56, Indio, California, pleaded guilty today to one count of theft of government property for stealing tens of thousands of dollars from the U.S. Department of the Treasury’s Hardest Hit Fund in California, a program that provides mortgage payment assistance for unemployed or underemployed homeowners.

According to his plea agreement, in February 2016, Sneed lied under penalty of perjury when he signed an affidavit saying that he was unemployed, when in fact he was employed, to receive Hardest Hit Funds administered by Keep Your Home California. Based on his statement and continuing concealment of his employment, he received 18 monthly payments of unemployment mortgage assistance payments of approximately $2,279. He received more than $41,000 from March 2016 through July 2017. He then became delinquent on his mortgage and deeded his house to his 18-year old stepson, who filed a Chapter 13 bankruptcy petition based on Sneed’s request.

United States District Judge John F. Walter has scheduled an October 25, 2021 sentencing hearing, at which time Sneed will face a statutory maximum sentence of 10 years in federal prison.

“Anyone who steals from or defrauds the Hardest Hit Fund will be investigated and prosecuted,” said Christy Goldsmith Romero, Special Inspector General. “I thank the United States Attorney’s Office and FBI for standing with SIGTARP to bring justice.”

Keep Your Home California provided these funds under the U.S. Department of Treasury’s Hardest Hit Fund that provided mortgage payment assistance program that provided eligible low or moderate income homeowners who were involuntarily unemployed with temporary mortgage assistance so that they could avoid foreclosure and stay in their homes. SIGTARP investigated the case with the FBI. Assistant United States Attorney Benjamin J. Weir of the United States Attorney’s Office for the Central District of California is prosecuting this case.

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Woman Sentenced for Real Estate Fraud

Stephanie Abbott —  October 30, 2020 — Leave a comment

Vontia Jones, 39, Philadelphia, Pennsylvania, was sentenced to eight and a half years in prison, three years of supervised release, and ordered to pay $2,319,278 in restitution for engaging in real estate fraud by purporting to sell properties to buyers using fraudulent documents and obtaining the personal identifying information of people and using that information to file more than 900 fraudulent tax returns with the IRS, netting her over $2,319,000 in fraudulent refunds.

The defendant pleaded guilty in August 2019 to more than 30 fraud charges, including conspiracy to make false claims to the IRS; making, and aiding and abetting the making of false claims to the IRS; wire fraud; and aggravated identity theft. Jones operated a business that she identified by various names including “Jones Tax Service,” “Earned Income Credit Unit,” “EIC Unit,” and “Eelysium,” out of her home in the 1400 block of West Cayuga Street, Philadelphia for a period of roughly seven years.

Jones also organized and operated a scheme to file phony deeds for multiple residential properties in Philadelphia, purporting to transfer ownership of the houses in order to sell them for a profit. The defendant would research homes on real estate websites, typically targeting those where the owner had died or moved away, and would charge several thousand dollars to sell someone else one of these houses that she “deeded up.”

Together with her co-conspirators, Jones solicited the personal information of individuals and their dependents under the guise of getting them “tax money,” even if they never worked. Jones designed flyers advertising her services that stated: “Don’t you deserve some income tax money too? $750 [per child] welfare social security unemployment disability even if you never had a job.” Each of the returns submitted to the IRS was submitted by the defendant or her conspirators as self-prepared, as if it had been done by the individual taxpayer whose information had been stolen.

Together, they filed or directed others to file over 900 fraudulent tax returns claiming fictious self-employment income resulting in tax refund payouts by the IRS of more $2,319,000.

United States Attorney William M. McSwain made the announcement.

In addition to the tax return scheme, “Jones’ greed impacted the lives of many hundreds of victims, and her shameful actions had severe consequences for these innocent people,” said U.S. Attorney McSwain. “Not only did she and her co-conspirators steal personal information in order steal tax return money from the government, but also she sold people’s houses right out from underneath them to other people who believed that they were buying property from her legitimately. For her actions, she will now spend the better part of a decade in prison.”

“The degree to which Vontia Jones and her co-conspirators went in order to perpetrate this scheme is astounding,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Not only did Vontia Jones steal the identities of unwitting individuals, she also stole millions of dollars from the US government; and ultimately US taxpayers. Today, she stands a convicted felon who will spend years in federal prison.”

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Anthony J. Wzorek.

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R. E. Agent Pleads Guilty to Fraud

Stephanie Abbott —  December 12, 2019 — Leave a comment

Carol Michaelson, 56, Dawsonville, Georgia, a formerly licensed real estate agent, pleaded guilty today to defrauding her clients by faking property sales, forging contracts and deeds, and then pocketing her victims’ money.

According to the charges and other information presented in court,  Michaelson operated a scheme to defraud her clients while acting as a real estate agent.  She pretended to arrange real estate purchases for her clients and received funds from them to complete the purchases, but then diverted the funds to her own personal use.  In furtherance of the scheme, she prepared fraudulent real estate contracts listing false owners, forged signatures on the contracts and other agreements, and filed fraudulent warranty deeds with forged signatures with the county clerk’s office.  Michaelson also sent emails to her victims impersonating closing attorneys, loan officers, and other financial and real estate personnel, to trick the victims into believing that the real estate transactions were legitimate and progressing.

Michaelson defrauded her victims in a variety of ways.  In some cases, she falsely informed victims that certain properties were for sale by their owners, when in fact they were not; and the true owners were unaware of Michaelson’s false representations.  In another instance, after Michaelson deceived a victim into believing that she had purchased properties for the victim, Michaelson created false tenant identities to deceive the victim into further believing that she had arranged for the properties to be rented.  Michaelson then sent rent checks to the victim, pretending to be the false tenants.  The victim did not know that he was not the true owner of the properties.  In yet another instance, after facilitating a real sale to a victim, Michaelson transferred ownership back to the bank, without the victim’s knowledge, and filed a fraudulent warranty deed with forged signatures in the county clerk’s office.

Michaelson stole over $1 million from her victims through her real estate scheme.

Michaelson was previously charged with forgery, theft by conversion, and false statements in Dawson County for defrauding real estate clients.  As a result, she lost her real estate license in 2014.  Even after surrendering her license, Michaelson continued to act as an unlicensed real estate agent and engage in fraudulent real estate transactions.  Sentencing has not yet been scheduled.

“This defendant stole her clients’ hard-earned money by pretending to purchase properties for them, while pocketing their funds for her own personal use,” said U.S. Attorney Byung J. “BJay” Pak.  “She then tried to cover her tracks with fake sales agreements and forged deeds.  Michaelson is a repeat offender, having previously lost her real estate license for defrauding clients.”

“This case demonstrates the commitment the Secret Service and our law enforcement partners have in aggressively pursuing those who defraud innocent victims,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office.  “This guilty plea should serve as a reminder to other like-minded individuals that we will protect our economic system and arrest criminals who violate public trust for personal gain.”

“We are grateful to all the involved criminal justice agencies who worked so diligently to help close these cases. It is our continued desire that justice will be served in hopes of deterring these types of crimes,” said Dawson County Sheriff Jeff Johnson.

The U.S. Secret Service, the Dawson County Sheriff’s Office, and the Enotah Judicial Circuit District Attorney’s Office are investigating this case.

Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

 

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