Archives For false assets

Todd Ament, 57, Orange, California, the former president and CEO of the Anaheim Chamber of Commerce pleaded guilty today to federal criminal charges for defrauding a cannabis company, fraudulently obtaining a COVID-relief business loan worth nearly $62,000, lying to a bank while seeking a loan for a $1.5 million second home, and cheating on his taxes.

According to his plea agreement, in 2019, Ament served as president and CEO of the Anaheim Chamber of Commerce. During that time, Ament and a political consultant who was a partner at a national public relations firm, devised a scheme to divert proceeds intended for the Chamber through the PR firm and into Ament’s personal bank account.

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 $41,000 of that money was paid directly to Ament without those payments being disclosed to the client.

In December 2020, Ament lied to JPMorgan Chase by submitting a letter falsely representing that three deposits from the PR firm to Ament-controlled bank accounts – totaling $205,000 – were earned income based on services provided by TA Consulting LLC on the PR firm’s behalf. In fact, Ament knew the $205,000 represented a loan to himself and was not earned income.

In April 2020, Ament applied to the Small Business Administration (SBA) for an Economic Injury Disaster Loan (EIDL) on behalf of his company, TA Consulting LLC, a sole proprietorship based in Big Bear City that had no substantial operations or employees. In May 2020, the SBA wired Ament $61,900 as EIDL proceeds for his business. Ament used the money to pay for various personal expenses, including at clothing stores, boat dealers and on property taxes on his home.

Finally, Ament admitted in his plea agreement that for the tax years 2017, 2018 and 2019 he knowingly and willfully caused false tax returns to be signed and filed that did not report income he had received from various sources. For example, in July 2019, Ament signed and filed a federal tax return that reported that his gross receipts for the tax year 2018 was $0, when in fact his actual gross receipts for that year were $179,336.

In total, Ament caused a tax loss to the United States government of $249,998 for those three tax years.

Ament pleaded guilty to two counts of wire fraud, one count of making a false statement to a financial institution, and one count of subscribing to a false tax return.

United States District Judge Fernando L. Aenlle-Rocha scheduled a December 9 sentencing hearing, at which time Ament will face statutory maximum sentences of 20 years in federal prison for each wire fraud count, 30 years in federal prison for the false statement to a financial institution count, and three years’ imprisonment for the tax count.

The FBI and IRS Criminal Investigation are investigating this matter.

Eric Hill, 52, Tyrone, Georgia, an Atlanta real estate agent has been sentenced for his participation in a mortgage fraud scheme that netted more than $21 million in fraudulent mortgage loans.

According to the charges and other information presented in court: The defendants participated in a scheme in which homebuyers and real estate agents submitted fraudulent loan applications to induce mortgage lenders to fund mortgages.  Eric Hill and Robert Kelske were real estate agents who represented a major nationwide homebuilder.  Hill and Kelske helped more than 100 homebuyers who were looking to buy a home, but who were unqualified to obtain a mortgage, commit fraud.  The agents instructed the homebuyers as to what type of assets they needed to claim to have in the bank, and what type of employment and income they needed to submit in their mortgage applications.

Hill and Kelske then coordinated with multiple document fabricators, including defendants Fawziyyah Connor and Stephanie Hogan, who altered the homebuyers’ bank statements to inflate their assets and to create bank entries reflecting false direct deposits from an employer selected by the real estate agent.  The document fabricators also generated fake earnings statements that matched the direct deposit entries to make it appear that the homebuyer was employed, and earning income, from a fake employer.  Other participants in the scheme then acted as employment verifiers and responded to phone calls or emails from lenders to falsely verify the homebuyers’ employment.  Defendants Jerod Little, Renee Little, Maurice Lawson, Todd Taylor, Paige McDaniel and Donald Fontenot acted as employment verifiers.  Hill and Kelske coordinated the creation and submission of the false information so that the lies to the lenders were consistent.

In another aspect of the scheme, Hill and Kelske conspired with real estate agents Anthony Richard and Cephus Chapman, who falsely claimed to represent homebuyers as their selling agents in order to receive commissions from the home sales.  In reality, these real estate agents had never even met the homebuyers they claimed to represent.  To avoid detection, the agents often notified closing attorneys that they would not be available for the home closing and sent wire instructions for the receipt of their commissions.  When these purported selling agents received their unearned commissions, they kicked back the majority of the commissions to Hill or Kelske for enabling them to be added to the deal, keeping a small share for their role in the scheme.

Many of the fraudulent loans were insured by the Federal Housing Administration (FHA), resulting in over $850,000 in claims being paid for mortgages that have defaulted.  Hill also engaged in a scheme to defraud his employer, a national real estate developer, out of over $480,000 dollars in real estate commissions.

Hill was sentenced to two years, six months in prison to be followed by three years of supervised release.  Hill was convicted on these charges on September 21, 2020, after he pleaded guilty.

In addition to Hill, Defendants Donald Fontenot, Maurice Lawson, Stephanie Hogan, Jerod Little, Renee Little, Paige McDaniel, Fawziyyah Connor, and Anthony Richard have all been sentenced for their roles in the conspiracies.

  • Todd Taylor pled guilty and is scheduled to be sentenced on March 3, 2022.
  • Robert Kelske also pled guilty and is scheduled to be sentenced April 14, 2022.
  • Cephus Chapman was convicted at trial and is scheduled to be sentenced on February 10, 2022.

Eric Hill and his co-conspirators defrauded mortgage loan holders out of millions of dollars, with taxpayers being saddled with much of the loss,” said U.S. Attorney Kurt R. Erskine.  “We will vigorously prosecute those who commit mortgage fraud and enrich themselves at the expense of financial institutions and government programs that insure or guarantee the loans.”

While it is easy to dismiss financial fraud cases as victimless crimes because of their lack of violence, there is, however, very real victimization to our economy and our taxpayers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing sends the message that the FBI will persistently work to protect American citizens and the real estate market from predators who drag down our economy by deception for their own personal gain.”

Eric Hill engaged in premeditated criminal acts with the sole purpose of enriching himself, without regard for millions of American homebuyers who rely on federal housing programs to insure their mortgages. His fraudulent actions strike not only at the fiscal integrity of the FHA, but also our neighbors and communities who are victims of these schemes,” said Special Agent in Charge Wyatt Achord with the Department of Housing and Urban Development Office of Inspector General.

The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who commit fraud in the housing and mortgage market and abuse the resources of the Government-Sponsored Enterprises regulated by FHFA.  We are proud to have partnered with HUD-OIG, the FBI, and the U.S. Attorney’s Office for the Northern District of Georgia in this case,” said Edwin S. Bonano, Special Agent-in-Charge, FHFA-OIG, Southeast Region.

This case was investigated by the Department of Housing and Urban Development Office of the Inspector General, Federal Bureau of Investigation, and Federal Housing Finance Agency Office of Inspector General.

Assistant U.S. Attorneys David A. O’Neal, Alison B. Prout, and former Northern District of Georgia Assistant U.S. Attorney Ryan Huschka prosecuted 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.

 

Shonda Coleman, 49, Toms River, New Jersey, and Robert Goodrich, 62, Sayreville, New Jersey were sentenced today for their roles in a mortgage-fraud scheme.

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

From 2009 to 2011 Coleman worked at Westinghouse Redevelopment Act Inc., a New Jersey business entity. In November 2009, Coleman submitted a fraudulent mortgage loan application to the lender to finance her own purchase of a home from Westinghouse. That application falsely represented, among other things, that Coleman owned $165,000 in cash, a representation intended to make Coleman appear more creditworthy than she actually was. In March 2011, Coleman again participated in the mortgage fraud scheme by helping to prepare and submit a mortgage application for a prospective buyer of a Westinghouse real estate property that she knew contained false information regarding the buyer’s finances.

Goodrich appeared at the closings for both the November 2009 and March 2011 transactions and signed settlement statements that he knew contained false information regarding the buyers’ creditworthiness.

Coleman previously pleaded guilty before Judge Wigenton to two counts of an indictment charging her and, with bank fraud. Goodrich had previously pleaded guilty before Judge Wigenton to the same two counts of the indictment to which Coleman pleaded guilty and was sentenced on April 7, 2021, sentenced to 27 months in prison. Judge Wigenton imposed Coleman’s sentence today by videoconference.

Acting U.S. Attorney Rachael A. Honig made the announcement.

Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and the U.S. Department of Housing & Urban Development, Office of Inspector General, Mid-Atlantic Region, under the direction of Special Agent in Charge Shawn Rice, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit and Special Assistant U.S. Attorneys Kevin V. Di Gregory and Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.

 

Eric Hill, 50, Tyrone, Georgia, Robert Kelske, 52, Smyrna, Georgia,  Fawziyyah Connor, 41, Tyrone, Georgia, Stephanie Hogan, 57, Norcross, Georgia, Jerod Little, 42, McDonough, Georgia, Renee Little, 33, McDonough, Georgia, Maurice Lawson, 36, Powder Springs, Georgia, Todd Taylor, 54, Fairburn, Georgia, Paige McDaniel, 49, Stockbridge, Georgia, Donald Fontenot, 52, Locust Grove, Georgia, and Anthony Richard, 44, Locust Grove, Georgia, have pleaded guilty to conspiracy to defraud the United States in a mortgage fraud scheme spanning more than four years and resulting in the approval of more than 100 mortgages based on fabricated documents and false information.

According to the charges and other information presented in court: The defendants participated in a conspiracy in which homebuyers and real estate agents submitted fraudulent loan applications to induce mortgage lenders to fund mortgages.

Listing agents Eric Hill and Robert Kelske represented a major nationwide homebuilder and helped more than 100 homebuyers who were looking to buy a home, but who were unqualified to obtain a mortgage, commit fraud.  The agents instructed the homebuyers as to what type of assets they needed to claim to have in the bank, and what type of employment and income they needed to submit in their mortgage applications.

Hill and Kelske then coordinated with multiple document fabricators, including defendants Fawziyyah Connor and Stephanie Hogan, who altered the homebuyers’ bank statements to inflate their assets and to create bank entries reflecting false direct deposits from an employer selected by the real estate agent.  The document fabricators also generated fake earnings statements that matched the direct deposit entries to make it appear that the homebuyer was employed, and earning income, from a fake employer.  Other participants in the scheme then acted as employment verifiers and responded to phone calls or emails from lenders to falsely verify the homebuyers’ employment.  Defendants Jerod Little, Renee Little, Maurice Lawson, Todd Taylor, Paige McDaniel and Donald Fontenot acted as employment verifiers.  Hill and Kelske coordinated the creation and submission of the false information so that the lies to the lenders were consistent.

In another aspect of the scheme, real estate agent Anthony Richard falsely claimed to represent homebuyers as their selling agent in order to receive commissions from the home sales.  In reality, Richard had never even met the homebuyers he claimed to represent.  To avoid detection, he often notified closing attorneys that he would be unable to attend the closing and sent wire instructions for the receipt of his commissions.  When Richard received his unearned commissions, he kicked back the majority of the commissions to Hill or Kelske for enabling him to be added to the deal, keeping a small share for his role in the scheme.

Many of the loans are insured by the Federal Housing Administration (FHA) resulting in claims being paid for mortgages that have defaulted.

These defendants brazenly manipulated the real estate lending process by using their knowledge of the system,” said Acting U.S. Attorney Kurt Erskine.  “Mortgage fraudsters threaten the soundness of the real estate market in our community and divert critical resources away from those borrowers who properly qualify for loans.  Rooting out bad actors who attempt to abuse the system for their own personal gain makes the mortgage lending system safer and fairer for everyone.

These defendants who dragged down our economy by using deception, will now be sentenced and forced to reimburse the victims of their conspiracy,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to combating such criminal activity to protect our citizens and the real estate market from predators who are most interested in pocketing money that they have no right to.”

These offenders engaged in blatant criminal acts with the sole purpose of enriching themselves at the cost of a federal housing program designed to assist millions of American homebuyers.  Their fraudulent undertaking strikes at the fiscal integrity of the FHA and we will work diligently in conjunction with our law enforcement partners to hold them accountable” said Wyatt Achord, Special Agent in Charge, HUD Office of Inspector General.

“The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who waste, steal, or abuse the resources of the Government-Sponsored Enterprises regulated by FHFA.  We are proud to have partnered with the U.S. Attorney’s Office for the Northern District of Georgia in this case,” said Edwin S. Bonano, Special Agent-in-Charge, FHFA-OIG, Southeast Region.

These defendants have agreed to pay restitution to the victims of their conspiracy, including the Department of Housing and Urban Development, which insures many of the residential mortgages in the United States. Sentencing hearings have been set for these defendants before U.S. District Judge Mark H. Cohen.

A twelfth defendant, Cephus Chapman, 49, Warner Robins, Georgia is awaiting trial.  Members of the public are reminded that the indictment only contain charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the Federal Bureau of Investigation, Department of Housing and Urban Development Office of Inspector General, and Federal Housing Finance Agency Office of Inspector General.

Assistant U.S. Attorneys Alison Prout and Ryan Huschka are 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.

 

Alagi Samba, 50, Bronx, New York, who was convicted of conspiracy to commit wire and mail fraud affecting a financial institution, was sentenced today to time served.

Between about June 2008 and February 2009, the defendant conspired with others to devise a scheme to commit mortgage fraud and obtain eight loans for unqualified borrowers for homes in the Bronx, New York.

As part of the scheme, Samba served as a realtor on behalf of co-conspirator Daniel Badu in the purchase of a property in the Bronx, New York. The defendant was aware that Badu was employed as a home health aide and did not have the income or assets to qualify for a mortgage loan in the amount of $574,543 to purchase the property. Samba obtained Badu’s personal identification information and business documents and provided them to another co-conspirator, a mortgage broker, knowing that the documents would be altered or falsely created to indicate that Badu was an ophthalmologist at his company Eagle Eyes. In addition, fraudulent paystubs and tax returns were submitted to support the loan application. Samba provided these false loan documents in order to secure a loan insured by the Federal Housing Administration. Based on that false application and supporting documentation, the loan was approved.

The defendant and his co-conspirators arranged for additional fraudulent loans to be approved, including another loan for Badu, and caused wire communications to be transmitted in interstate commerce for those loans. The defendant caused losses of approximately $547,000 affecting financial institutions in Buffalo and elsewhere.

Five co-defendants, including Daniel Badu, were previously convicted and sentenced.

Samba was also ordered to pay restitution totaling $790,350.40 to M&T Bank and the U.S. Department of Housing and Urban Development.

U.S. Attorney James P. Kennedy Jr. made the announcement.

The sentencing is the result of an investigation by the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Joseph W. Cronin, Boston Division; the Department of Housing and Urban Development, under the direction of Special Agent in Charge Brad Geary; and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.