Archives For Indiana

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

 

Daniel R. Fruits, 46, Greenwood, Indiana, was charged today by a federal grand jury for his alleged role in three separate fraud schemes, including attempted mortgage fraud , a nearly $14 million fraud on an investor, and a vehicle title-washing scheme.

The Indictment alleges Fruits attempted to perpetrate a mortgage fraud scheme on Fifth Third Bank. Specifically, in late 2018, Fruits made false statements to Fifth Third Bank to secure a $432,000 mortgage. He twice submitted falsified paperwork purporting to show that loans from another bank had been paid off, when they had not been.

The Indictment also alleges that Fruits defrauded a Kentucky investor, who was also Fruits employer, out of nearly $14 million. In 2015, the investor founded a trucking company, Secure Transit, and hired Fruits to run it. Over the next four-and-a-half years, the investor would invest approximately $14 million in the business.

Fruits repeatedly lied about the company’s financial health, who its customers were, and what the money invested was being used for. On multiple occasions, Fruits allegedly sent the investor fictitious customer sales contracts and falsified financial statements that reported inflated company profits. At the same time, Fruits allegedly asked the investor for additional investments, sometimes in the millions of dollars, purportedly for the purchase of trucks or other business expenses.

Fruits spent a significant portion of the money on his own personal purchases and payments. He allegedly spent approximately $880,000 to purchase a horse farm and his personal residence, $560,000 on an RV and trailer, over $111,000 on a Corvette, approximately $90,000 on three Rolex watches, approximately $55,000 on a horse, $33,000 on a horse trailer, $23,000 on payments for two Ferraris, and $30,000 on payments for two escorts.

Finally, Fruits perpetrated a title-washing scheme to remove a bank’s lien from the title of a truck he purchased. He financed the truck with a loan from Ally Financial for over $69,000.  Several months later, he sent the Indiana Bureau of Motor Vehicles a falsified letter purportedly from Ally Financial stating that the loan had been paid off and the lien should be released.

The loan had not been paid off and Ally Financial never wrote that letter. As a result, the BMV issued Fruits a free-and-clear title for the truck, which Fruits then sold for $48,000, without repaying the loan to Ally Financial.

Acting United States Attorney John E. Childress made the announcement.

This financial investor gave his hard-earned money to someone whom he thought he could trust,” said Childress. “Instead, the victim’s money ended up in the hands of a self-absorbed thief who only cared about his interests. Living a life of fraud is inexcusable and always comes to an end.

This case was the result of an investigation by the Federal Bureau of Investigations, and Internal Revenue Service Criminal Investigation.

This indictment sends a strong message that the FBI will aggressively investigate those who commit such extensive financial fraud and steal from their employer to pad their own pockets to fund a lavish lifestyle,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our law enforcement partners will always pursue those who take advantage of others through illegal and criminal behavior.

The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit and greed, has taken what belongs to others,” said Acting Special Agent in Charge Tamera Cantu, of IRS Criminal Investigation, Chicago Field Office. “With our agent’s financial investigation expertise, we followed the money and helped to unravel the fraud and deceit conducted by Mr. Fruits. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partner and the U.S. Attorney’s office in the Southern District of Indiana.”

An indictment is a set of allegations and is not itself evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, long-running fraud schemes. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1)

 

Walter Woldt, 55, Crown Point, Indiana, was sentenced on his plea of guilty to conspiracy to commit mail fraud.

According to documents in this case, in 2006 and 2007 Woldt worked with Al Rodenburg, a mortgage broker based in Texas, to purchase 14 residential properties in Northwest Indiana in the span of 30 days with no money down. Defendants Rodenburg and Woldt worked out an arrangement where Woldt obtained mortgages that Rodenburg found for him on multiple properties beginning on January 3, 2007. They continued the process of closing on multiple properties roughly twice a week up through February 1, 2007. They knew that by closing on the properties so quickly mortgages Woldt obtained in early January 2007 would not hit his credit report for at least 30 days thereby depriving subsequent lenders, including lenders who purchased these mortgages in the secondary market, of material information they would want and need to know about Woldt’s debts for purposes of evaluating credit worthiness. Defendant Rodenburg did this for the commission he received on the mortgages Woldt obtained.  Defendant Rodenberg was sentenced on February 22, 2018 to a 14 month prison term, two years of supervised release and ordered to pay $1, 004,991 in restitution.

Woldt was sentenced to 14 months in prison followed by 24 months of home detention and ordered to pay $1,004,991 in restitution. He was ordered to report to the Bureau of Prisons (“BOP”) on August 3, 2018.

The announcement was made by U.S. Attorney Thomas L. Kirsch II.

This case was investigated by the FDIC-Office of Inspector General and was prosecuted by Assistant United States Attorney Diane Berkowitz.

Brian Kandefer, 37, San Diego, California, was sentenced to 121 months imprisonment and ordered to pay $1.4 million dollars in restitution after his guilty plea to wire fraud and money laundering.

According to documents in the case, K2 Capital Management Inc. did business as US Mortgage Bailout and USMortgageBailout.com with physical offices located in La Jolla, California.  Brian Kandefer was a 50% owner of K2 Capital Management Inc. dba US Mortgage Bailout and dba USMortgageBailout.com.  Continue Reading…

Hrong Arman Gasparian, 67, Fishers, Indiana, was convicted of 10 counts of wire fraud after a three-day jury trial before U.S. District Judge Sarah Evans Barker.  He was convicted for his involvement in two fraudulent schemes that swindled prospective borrowers of hundreds of thousands of dollars.

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Eloise Blackmon, Gary, Indiana, was sentenced to 10 months in prison for her role in a mortgage fraud scheme. Upon release, Blackmon was also sentenced to supervised release for a period of two years. The scheme involved the purchase and sale of up to 25 properties. The defendant and her co-conspirators submitted false and fraudulent documents to lenders in order to qualify the borrowers for loans.

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Jeffrey Youngheim, 47, Portage, Indiana, and Richard Loveless, 52, Gary, Indiana, were sentenced by District Judge Joseph Van Bokkelen for their roles in a large-scale mortgage fraud scheme.

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John Carlisle, 49, New Haven, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of making false statements and reports regarding mortgage loans and aiding and abetting in such conduct.

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Brian Edwards, 50, Fort Wayne, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment, 2 years supervised release and of $400,000 in restitution after pleading guilty to the felony offense of making false statement in connection with a mortgage loan and mortgage insurance.

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Todd Van Natta, Seymour and Columbus, Indiana, was sentenced by U.S. District Judge William T. Lawrence to 60 months in federal prison after pleading guilty to 10 counts of bank fraud, three counts of wire fraud, and two counts of tax fraud.

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