Archives For Bank Fraud

Real Estate Investor Found Guilty on Mortgage Fraud Charges

Stephanie Abbott —  May 25, 2018 — Leave a comment

Dean Rossi, 49, Warrington, Pennsylvania, was found guilty by a federal jury yesterday of bank, mail and loan fraud in connection with a mortgage scheme.

Rossi, who owned numerous low-income properties throughout the Philadelphia area, misappropriated more than $643,000 from real estate closings. Specifically, after obtaining bank loans to purchase or refinance residential properties, Rossi teamed up with corrupt title/closing agents to divert a substantial portion of the loan proceeds, and then he pocketed cash from the settlements which should have been used to pay off prior mortgages and tax liens. In addition, to prevent the scheme from being detected, Rossi continued to cause payments to be made on the prior existing mortgages years after those loans were supposed to have been paid in full.

Rossi faces a maximum possible sentence of 120 years’ imprisonment, five years of supervised release, and a $4 million fine.

The announcement was made by U.S. Attorney William M. McSwain.

“Our investigators and trial team did a phenomenal job of following a trail of evidence that goes back more than a decade,” said U.S. Attorney McSwain. “The defendant went to great lengths to cover his tracks, but due to the hard work of our agents and prosecutors, his long-running scheme was exposed.”

The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joel Goldstein.

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Role in Sweeping Mortgage Fraud Conspiracy Gets Mortgage Loan Officer Jail Time

Stephanie Abbott —  May 24, 2018 — Leave a comment

Vanessa Ricci, 41, Methuen, Massachusetts, a mortgage loan officer, was sentenced yesterday in federal court in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley, Massachusetts.

Ricci was sentenced to six months in prison, three years of supervised release and ordered to pay restitution of $963,730. In March 2018, Ricci pleaded guilty to one count of conspiracy to commit bank fraud. http://www.mortgagefraudblog.com/?s=Vanessa+Ricci

Co-defendants Jasmin Polanco, 37, a real estate closing attorney, previously pleaded guilty to one count of conspiracy to commit bank fraud and is scheduled to be sentenced on June 21, 2018;  Greisy Jimenez, 50, pleaded guilty to two counts of bank fraud and one count of conspiracy to commit bank fraud and is scheduled to be sentenced on June 6, 2018; Hyacinth Bellerose, 51, a real estate closing attorney, was sentenced in March 2017 to time served and one year of supervised release to be served in home detention after pleading guilty to conspiracy to commit bank fraud.

The charges arose out of a scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen, Massachusetts in which the purported sellers remained in their homes, with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any existing mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.

The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.

The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties; in fact, the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale. The conspirators also submitted phony earnings statements in support of loan applications that were submitted to banks in order to obtain new financing for the purported sales. In addition, the defendants submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. (HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)

United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement.  Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit, and Assistant U.S. Attorneys Sara Miron Bloom and Victor A. Wild, also of the Economic Crimes Unit, prosecuted the cases.

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Two Sentenced For Their Role In Mortgage Fraud Conspiracy

Stephanie Abbott —  May 18, 2018 — Leave a comment

Alejandro Tobon, 35, Orlando, Florida has been sentenced to 37 months and Carlos Escarria, 61, Largo, Florida has been sentenced to 18 months in federal prison, for conspiracy to commit bank and wire fraud. They pleaded guilty on June 9, 2017.

According to court documents, from as early as October 2007 through May 2008, Tobon, Escarria, and others conspired to execute a bank and wire fraud scheme. The goal of the fraud scheme was to sell condominium units at The Preserve at Temple Terrace, a 392-unit condominium complex in Tampa, Florida. To entice buyers to purchase the units, the conspirators offered cash payments to buyers, either before or after closing. The mortgage lenders were not made aware of these payments. The conspirators used several entities to conceal from the mortgage lenders the cash payments to buyers.

The conspirators made false statements on loan documents, such as purchase and sale agreements and loan applications, and on HUD-1 settlement statements, to induce mortgage lenders to approve loans for otherwise unqualified borrowers for the condo unit purchases.

Tobon was the manager of Transcontinental Lending Group’s branch in Tampa, Florida and he was also the President of Tobon Marketing and Consultant. His role in the conspiracy included submitting false and fraudulent loan applications to financial institutions to induce them to provide funding for buyers to purchase Preserve units. He also marketed units to buyers with undisclosed incentives and transferred funds he had received from the developer through Tobon Marketing and Consultant to borrowers’ bank accounts who needed money to close on the purchases. The money was then used to provide the down payment and cash to close requirements.

Escarria worked as a loan officer at Transcontinental Lending Group’s branch in Tampa, Florida. He signed false and fraudulent loan applications to induce financial institutions into providing funding for buyers to purchase condo units. The false representations submitted to and relied upon by the mortgage lenders included occupancy, income, source of funds, and assets.

The mortgage lenders’ total losses resulting from Tobon’s and Escarria’s role in the mortgage fraud conspiracy are approximately $5.8 million.

Tobon and Escarria were sentenced by U.S. District Judge Susan C. Bucklew.

This case was investigated by Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.

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Lake Jackson Area Attorney Convicted for Bank Fraud

Stephanie Abbott —  April 30, 2018 — Leave a comment

Kirk Lawrence Brannan, 64, Texas has entered a guilty plea to bank fraud for his role in a mortgage fraud scheme.  Brannan admitted to conspiring with others from 2005 to 2009 to execute a scheme to defraud Wells Fargo Bank and other lenders.

Brannan sold 10 beach homes in the Freeport/Surfside, Texas area to “straw buyers” at exorbitant prices. Other co-conspirators recruited straw buyers who created loan applications with misrepresentations that lenders relied upon in deciding to make the mortgage loans. The applications contained misrepresentations of the buyer’s address, employer, income and expenses. The applications also suggested the buyers were much better credit risks than they actually were. Brannan admitted he paid kickbacks to co-conspirators each time one of the beach homes was sold to a straw buyer.

The beach properties were sold at two to three times the appraised values. The mortgage lenders, including Wells Fargo Bank, were induced to lend the inflated amounts for the purchases through flawed or fraudulent appraisals which were based on comparisons Brannan manufactured to further the scheme.

Brannan created settlement statements that suggested he sold three of his properties to his children at exorbitant prices. Appraisers relied upon these “sales” as comparable sales in appraising Brannan’s remaining properties sold to straw buyers. As a result of the fraudulent appraisals, he and his co-conspirators were able to inflate the values for his properties and deceive the lenders into approving home loans at those exorbitant amounts.

All of the straw buyers defaulted on the mortgages, and all 10 of the beach properties ended up in foreclosure.

The fraudulent mortgage loan scheme resulted in a loss of $5,317,350 to Wells Fargo Bank and the other lenders. Brannan paid $2,401,368 to his co-conspirators as part of the scheme.

U.S. District Judge Lee Rosenthal accepted the plea and set sentencing for Aug. 29, 2018, at which time Brannan faces up to 30 years in federal prison and a possible $1 million maximum fine. He was permitted to remain on bond pending that hearing.

Co-conspirators Chucoboie Lanier, 41, Houston, Texas, David Lee Morris, 55, Houston, Texas, and Derwin Jerome Blackshear, 50, Houston, Texas, previously pleaded guilty for their roles in the scheme. They are set for sentencing Sept. 26, 2018.

U.S. Attorney Ryan K. Patrick made the announcement.

The Texas Department of Public Safety and the FBI conducted the investigation. Assistant U.S. Attorneys Robert Johnson and Michael Day are prosecuting the case.

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Father and Son Plead Guilty In Mortgage Fraud Scheme

Stephanie Abbott —  April 11, 2018 — Leave a comment

Herzel Meiri, 64, and Amir Meiri, 35, pled guilty yesterday to conspiracy to commit wire fraud and bank fraud, in connection with their scheme to fraudulently induce distressed homeowners to sell their homes for little or no consideration to a company they owned and controlled.

According to allegations in the contained documents filed in federal court, including the Indictment and Complaint:

From 2013 to 2015, Herzel Meiri and Amir Meiri defrauded distressed homeowners throughout the Bronx, Brooklyn, and Queens, New York.  The Meiris and others falsely represented to these homeowners – some of whom were elderly or in poor health – that they could assist them with a loan modification or similar relief from foreclosure that could result in the homeowners saving their homes.  But rather than actually assisting these homeowners, the defendants deceived them into selling their homes for less than the homes’ actual values to Launch Development LLC (“Launch Development”), a for-profit company owned and controlled by the Meiris.

Specifically, the Meiris’ direction fraudulently induced the homeowners to engage in a type of short sale in which the homeowner would sell the property to Launch Development.  The Meiris and their conspirators falsely assured the homeowners that their homes would be returned to them after a short period, and that they could remain in their homes throughout the entire process.  At the closing that followed, homeowners were encouraged to sign fraudulent documents, that unbeknownst to the homeowners transferred the homes Launch Development.  Homeowners often were then forced to vacate their homes, and in many cases had no other place to live. Launch Development resold many of the homes, which were purchased at fraudulently deflated prices, for an enormous profit.

Herzel Meiri, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years in prison and a maximum fine of $1,000,000 or twice the gross gain or loss from the offense.  He also consented to forfeit $6,469,291.41, as well as 31 real properties, four bank accounts, and one escrow account, as proceeds traceable to the offense.

Amir Meiri, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years in prison and maximum fine of $1,000,000 or twice the gross gain or loss from the offense.  He also consented to forfeit the same 31 real properties, four bank accounts, and one escrow account, as proceeds traceable to the offense.

The defendants will be sentenced by before U.S. District Judge Edgardo Ramos on July 27, 2018.

Robert S. Khuzami, the Attorney for the United States praised the outstanding work of the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program, and the New York State Department of Financial Services for their investigative efforts and ongoing support and assistance with the case.

The prosecution of this case is being overseen by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Andrew Thomas and Sheb Swett are in charge of the case.

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Bank Fraud Gets Husband and Wife Sentenced to Prison

Stephanie Abbott —  March 30, 2018 — Leave a comment

Joseph Atias, 54, Great Neck, New York was sentenced to 40 months’ imprisonment and his wife Sofia Atias, 48, Great Neck, New York was sentenced to 8 months’ imprisonment, following their March 30, 2017 trial convictions for bank fraud and conspiracy to commit bank fraud in connection with the sale of their real property to Sacred Heart Academy, Hempstead, New York for athletic fields. They were also convicted of Medicaid fraud.

The Bank Fraud Scheme

At trial, the government’s evidence established that shortly before the sale of their property adjacent to Sacred Heart Academy for $925,000, the defendants sold the property in a short sale to Bank of America for $480,000 to discharge their mortgage debt.  In negotiating the short sale with the bank, the defendants and their co-conspirator attorney concealed Sacred Heart Academy’s pending offer and submitted a fraudulent contract of sale and other false documents representing that they did not have funds to pay off the mortgages in full.  As part of the fraudulent short sale, the defendants used a relative as a “straw buyer” of the property to create the appearance of an arms-length sale.  Shortly after that sale, the defendant’s straw buyer sold the property to Sacred Heart Academy for approximately half a million dollars in profit.

The Medicaid Fraud Scheme

The government’s evidence at trial established that between 2009 and 2015 the defendants fraudulently obtained Medicaid funds, by concealing their self-employment income and available cash resources, including trust fund monies and the $465,000 in proceeds from the bank fraud scheme.

As part of their sentences, United States District Judge Denis R. Hurley ordered the defendants to pay $465,965 in forfeiture and $49,956 in restitution.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

“Joseph and Sofia Atias committed fraud schemes to try to get out from under mortgage debt and to fraudulently obtain Medicaid funds, essentially flaunting the laws to which we all must adhere,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will make every effort to ensure that those who would manipulate the system are called to account.”

“In a clear case of double dipping, the defendants convinced the lending institution of their eligibility to qualify for a short sale on their property, recruited a relative to serve as a straw buyer for the property, and profited from the funds of a subsequent sale of the property,” stated FBI Assistant Director-in-Charge Sweeney.  “At the same time they were running this scheme, they were also found to have engaged in significant fraud against the government. May today’s sentencing remind those who exploit government programs and manipulate gaps in the mortgage and banking sectors that they will face the error of their ways.”

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Charles P. Kelly and Burton T. Ryan, Jr., are in charge of the prosecution.  Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division is handling matters related to forfeiture.

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Greensboro Man Convicted for Extensive Bank Lien Theft Scheme

Stephanie Abbott —  March 29, 2018 — Leave a comment

Xavier Milton Earquhart, 30, Greensboro, North Carolina, was convicted following a three-day jury trial of an extensive bank lien theft scheme, money laundering, and aggravated identity theft.

The evidence at trial showed that, in one bank fraud scheme, the defendant forged a deed on a property owned by an out of state landowner, and then channeled the property ownership through fictitious individuals and a holding company before personally taking title to the property.  The defendant then attempted to secure $495,000 in home equity loans using the property as collateral, becoming successful on three such attempts.

In a second scheme, the evidence showed that the defendant forged bank lien releases on 8 properties, in some instances, by stealing the identities of bank employees, and in other instances, using fictitious notaries.  The defendant created Delaware holding companies to conceal his activities. The defendant then sold the properties off to unknowing third parties.  At trial, the evidence showed that because of the defendant’s actions, some homeowners lost the funds that they had invested into the properties.  Other victims were left uncertain as to the ability of their families to remain in the homes due to the cloud upon their title.

Lastly, the evidence at trial included evidence from law enforcement concerning the tracing of the defendant’s fraudulent gains.  Law enforcement used a note and key found in the defendant’s Prius to uncover a hidden trove of $300,000 worth of gold, concealed in a storage unit in Spring, Texas.  Law enforcement also seized various items of valuable recording studio equipment.

The jury found Earquhart guilty of ten counts of Bank Fraud, two counts of Engaging in Monetary Transactions Involving Criminally Derived Property and one count of Aggravated Identity Theft and Aiding and Abetting.  Following the jury trial, the jury further found that the defendant was obligated to forfeit more than $1.3 Million in fraudulent proceeds, more than $100,000 in recording studio equipment, and $300,000 in gold bullion and coins.

Earquhart is tentatively scheduled to be sentenced by Senior United States District Judge W. Earl Britt in July 2018 and faces up to 30 years imprisonment.

The investigation of this case was conducted by the IRS Criminal Investigation, with the assistance of the Federal Deposit Insurance Corporation Office of the Inspector General, the Wake County Register of Deeds, Wake County Sheriff’s Office, United States Secret Service and the Bankruptcy Administrator for the Eastern District of North Carolina.  Assistant United States Attorney William M. Gilmore represented the government in this case.

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Barclays Agrees to Pay $2 Billion to Resolve Fraud Claims

Stephanie Abbott —  March 29, 2018 — Leave a comment

Barclays Capital, Inc. and several of its affiliates (together, Barclays) have reached an agreement with the United States to settle a civil action filed in December 2016 in which the United States sought civil penalties for alleged conduct related to Barclays’ underwriting and issuance of residential mortgage-backed securities (RMBS) between 2005 and 2007.

Following a three-year investigation, the complaint in the action, United States v. Barclays Capital, Inc., alleged that Barclays caused billions of dollars in losses to investors by engaging in a fraudulent scheme to sell 36 Residential Mortgage-Backed Securities (“RMBS”) deals, and that it misled investors about the quality of the mortgage loans backing those deals.  It alleged violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), based on mail fraud, wire fraud, bank fraud, and other misconduct.

The scheme alleged in the complaint involved 36 RMBS deals in which over $31 billion worth of subprime and Alt-A mortgage loans were securitized, more than half of which loans defaulted.  The complaint alleged that in publicly filed offering documents and in direct communications with investors and rating agencies, Barclays systematically and intentionally misrepresented key characteristics of the loans it included in these RMBS deals.  In general, the borrowers whose loans backed these deals were significantly less creditworthy than Barclays represented, and these loans defaulted at exceptionally high rates early in the life of the deals.  In addition, as alleged in the complaint, the mortgaged properties were systematically worth less than what Barclays represented to investors.  These are allegations only, which the Defendants dispute, and there has been no trial or adjudication or judicial finding of any issue of fact or law.

Barclays will pay the United States two billion dollars ($2,000,000,000) in civil penalties in exchange for dismissal of the Amended Complaint.

Agreement has also been reached with the two former Barclays executives who were named as defendants in the suit:  Paul K. Menefee, Austin, Texas, who served as Barclays’ head banker on its subprime RMBS securitizations, and John T. Carroll, Port Washington, New York, who served as Barclays’ head trader for subprime loan acquisitions.  In exchange for dismissal of the claims against them, Menefee and Carroll agree to pay the United States the combined sum of two million dollars ($2,000,000) in civil penalties.

The settlement was announced by Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Laura S. Wertheimer, Inspector General, of the Federal Housing Finance Agency Office of the Inspector General (FHFA-OIG).

“This settlement reflects the ongoing commitment of the Department of Justice, and this Office, to hold banks and other entities and individuals accountable for their fraudulent conduct,” stated United States Attorney Donoghue. “The substantial penalty Barclays and its executives have agreed to pay is an important step in recognizing the harm that was caused to the national economy and to investors in RMBS.”

“The actions of Barclays and the two individual defendants resulted in enormous losses to the investors who purchased the Residential Mortgage-Backed Securities backed by defective loans,” stated FHFA-OIG Inspector General Wertheimer.  “Today’s settlement holds accountable those who waste, steal or abuse funds in connection with FHFA or any of the entities it regulates.  We are proud to have partnered with the U.S. Department of Justice and the U.S Attorney’s Office for the Eastern District of New York on this matter.”

The government’s case has been handled by this Office’s Civil Division.  Senior Counsel F. Franklin Amanat, and Assistant United States Attorneys Matthew R. Belz, Charles S. Kleinberg, Evan P. Lestelle, Matthew J. Modafferi, Josephine M. Vella and Alex S. Weinberg have been in charge of the litigation.  Mr. Donoghue thanks the FHFA-OIG for its assistance in conducting the investigation in this matter.

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Arrests Made in In ‘Shotgun’ Loan Scheme

Stephanie Abbott —  January 29, 2018 — Leave a comment

Saoud “Sam” Rihan, 57, Bronx, New York was charged today with carrying out a scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning”.

According to the complaint:

Rihan was a business partner of Simon Curanaj, 63, Yonkers, New York. From 2012 through January 2014, Rihan, Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.

For example, Rihan and Curanaj executed a deed to transfer ownership of a Bronx, New York property to people identified in the complaint as “Individual 1” and “Individual 2,” neither of whom lived at the property. Rihan and Curanaj then applied for three HELOCs from multiple banks in the name of Individual 2.

Rihan and Curanaj hid the fact that the same Bronx, New York property was pledged as collateral in all three applications. The applications also fraudulently inflated Individual 2’s income. In addition, at the time the applications were made, the value of the Bronx, New York property, which was encumbered by a mortgage, was far less than the amount of the HELOC loans that Rihan and the real estate broker applied for.

The victim banks eventually issued loans to Individual 2 in excess of $370,000. After the victim banks funded the HELOCs and deposited money into Individual 2’s bank accounts, Individual 2 disbursed almost all of the funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all the HELOC loans.

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.

Rihan was arrested January 28, 2018 and charged by complaint with one count of conspiracy to commit bank fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

The charge and allegations against Rihan are merely accusations, and he is presumed innocent unless and until proven guilty.

Curanaj previously pleaded guilty to his role in the scheme and awaits sentencing.

U.S. Attorney Craig Carpenito made the announcement.

U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Steven Perez in Newark; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher in Newark, with the investigation.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.

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Four Indicted in Short-Sale Scheme

Stephanie Abbott —  October 19, 2017 — Leave a comment

John Ballard, 55, Atwater, California, Judy (Calderon) Ballard, 54, Atwater, California, Sherry Herbert, 54, Fresno, California and Andrea Todd, 53, Fresno, California were charged on October 12, 2017 with conspiracy, wire fraud and bank fraud in connection with a fraudulent short-sale scheme.

According to the court documents, Ballard and Calderon were both licensed real estate salespersons and they owned a home in Atwater, California which was their primary residence. When the couple defaulted on a loan on the property, they asked permission to short-sell the property to Herbert and Todd, but had no intention of actually transferring the property to them. They used a series of false and fraudulent representations to obtain approval from banks to conduct this transaction and caused these financial institutions to approve the charge-off of funds and the financing for the short-sale.

Herbert and Todd were arraigned today before U.S. Magistrate Erica P. Grosjean. Ballard and Calderon’s arraignments are currently set for November 29, 2017, before U.S. Magistrate Judge Stanley A. Boone.

The announcement was made by United States Attorney Phillip A. Talbert.

This case is the product of an investigation by the Merced County District Attorney’s Office and the Federal Bureau of Investigation. Assistant United States Attorneys Michael G. Tierney and Christopher D. Baker are prosecuting the case.

If any of the four defendants are convicted, they face a maximum statutory penalty of 30 years in prison and a $1,000,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

 

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