Archives For occupancy fraud

Marco Lurigio, also known as “Demetrio Cardone,” 45 and Sandy Lurigio, also known as “Janette Chavez,” 39, Downers Grove, Illinois,  a husband and his wife, have been charged in federal court in Chicago with participating in a mortgage fraud scheme that defrauded financial institutions out of at least $2.5 million.

The Lurigio’s owned several Illinois-based companies, including S&G Technologies Inc., O.C. Management Group Inc., Riverview Financial Inc., and Toro Management, Inc.  According to the indictment, the Lurigios recruited buyers to fraudulently obtain mortgage loans for properties on Chicago’s South Side by making and causing to be made materially false representations in documents submitted to financial institutions.  The false representations included documents and statements regarding, among other things, the buyers’ employment, income, assets, source of down payment, and intention to occupy the property as a primary residence, the indictment states.  In some instances, the Lurigios fraudulently claimed to lenders that the buyers were employed by one of the Lurigios’ companies, even though they knew that was untrue, the indictment states.  The alleged fraud scheme lasted from 2011 to 2014, the indictment states.

The indictment was returned Tuesday in U.S. District Court in Chicago.  It charges Marco Lurigio, and Sandy Lurigio with eight counts of financial institution fraud.  Arraignments have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Michael Powell, Special Agent-in-Charge of the Chicago office of the U.S. Department of Housing and Urban Development, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Jason Yonan and Alejandro Ortega.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of financial institution fraud is punishable by up to 30 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

 

David Daughtrey, 60, El Cajon, California was sentenced in federal court today on charges of bank fraud and tax evasion.

In July 2020, Daughtrey pleaded guilty to one count of conspiracy to commit bank fraud and tax fraud, and one count of filing a false tax return. Daughtrey’s illegal conduct spanned for a decade, from 2006 until 2016. For several years, Daughtrey evaded income tax by under-reporting his income and orchestrated an illegal scheme to fraudulently obtain a mortgage for his $1.8 million residence using a third party.  The total tax loss to the United States in this case was $1,053,989.63.

According to court documents, from July 2006 until April 2016, Daughtrey conspired with others to commit the crimes to which he pleaded guilty. As part of the bank fraud scheme, Daughtrey directed another individual to submit a mortgage application to a national bank to purchase a $1.8 million five-bedroom residence, and to falsely claim that the funds used as down payment belonged to, and the residence would be used by, the third party.

In reality, Daughtrey provided the funds and the home was intended to be Daughtrey’s primary residence. Daughtrey made monthly mortgage payments of approximately $8,000 for his residence but continued to represent to the bank that the third party owned the house. Daughtrey later submitted a false hardship letter on behalf of the third party in an effort to modify the terms of the loan on the home.

Over several years, Daughtrey conspired to commit tax evasion by filing tax returns listing substantially less income than Daughtrey actually earned.  Daughtrey’s tax return for the year 2012, for example, omitted at least $498,612 in income.  Daughtrey failed to report his total income in tax years 2013, 2014, and 2015, and did not file timely tax returns for subsequent years.  Daughtrey agreed to pay $1,053,989.63 in restitution to the IRS, which includes the total tax loss plus penalties and interest.

Daughtrey was sentenced to 18 months in custody and ordered to pay restitution of $1,519,590.63.

The defendant abused our tax and banking systems for his own financial benefit, and the victims of that crime are ethical taxpayers and bank customers,” said Acting U.S. Attorney Randy Grossman. “Today’s sentence will hopefully remind others that there is a high price to pay for such deception.” Grossman thanked prosecutor Oleksandra Johnson and agents from the IRS and FBI for their excellent work on this case.

While Mr. Daughtrey achieved business success, he failed in his obligations as an American by lying to our banks and cheating the government,” said Special Agent in Charge Ryan L. Korner, IRS Criminal Investigation. “Today’s sentencing shows that we will hold accountable those who deceive and exploit our people and financial institutions because of their greed.

The FBI and our partners at the IRS uncovered David Daughtrey’s mortgage fraud and tax evasion scheme using our team’s financial and fraud expertise,” said FBI Special Agent in Charge Suzanne Turner.  “Today’s sentencing serves as a warning to those who attempt to personally gain by deliberately cheating the government and the integrity of the banking system through financial fraud.  Our team of fraud experts will bring justice in these white-collar cases.”

Mohammad Shabazz Khan, Bourbannais, Illinois was indicted yesterday on four counts of making false claims to obtain federal mortgage assistance funds from the Troubled Asset Relief Program’s billion-dollar component Hardest Hit Fund (HHF), which was provided to Indiana’s housing finance agency to help unemployed and underemployed homeowners stay in their homes. The indictment alleges the defendant took assistance but did not live in his home.

Khan received $29,926.46 in mortgage assistance to which he was not entitled.

The Hardest Hit Fund was meant to help Indiana families stay in their homes in the aftermath of the 2008 economic crisis. The Hardest Hit Fund program in Indiana is administered by the Indiana Housing and Community Development Authority. In order to receive this mortgage assistance, an applicant was required to be an Indiana homeowner; own only one home; and reside in that home.

If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.

This case was investigated by the U.S. Department of Treasury’s Office of Special Inspector General for the Troubled Asset Relief Program (SIGTARP). This case is being prosecuted by Assistant United States Attorney Molly Kelley. SIGTARP was created as an independent law enforcement agency to investigate fraud, waste, and abuse related to the TARP bailout. To date, SIGTARP investigations have resulted in the recovery of over $11.2 billion, 389 criminal convictions and 305 defendants sentenced to prison.

The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.

United States Attorney Thomas L. Kirsch II, made the announcement.

I commend the Office of the U.S. Attorney for the Northern District of Indiana for standing with SIGTARP to combat fraud against homeownership preservation programs,” said Christy Goldsmith Romero, Special Inspector General.

To report a suspected crime related to TARP, call SIGTARP’s Crime Tip Hotline: 1-877-SIG-2009 (1-877-744-2009). To receive alerts about reports, audits, media releases, and other SIGTARP news, sign up at www.SIGTARP.gov/pages/press.aspx. Follow SIGTARP on Twitter @SIGTARP.

Mohammed Shahbaz Khan, 45, Bourbonnais, Illinois was indicted for making false claims in connection with his receipt of money from the Hardest Hit Fund, a federal mortgage assistance initiative offered by the U.S. Treasury Department’s Troubled Asset Relief Program.

According to the indictment, the purpose of the Hardest Hit Fund was to help stabilize communities in states, like Indiana, that were “hardest hit” by the 2008 economic and housing market downturn.  The Hardest Hit Fund program in Indiana is administered by the Indiana Housing and Community Development Authority.  In order to receive this mortgage assistance, an applicant was required to be an Indiana homeowner; own only one home; and reside in that home.

The indictment alleges that Khan knowingly submitted false statements about his residency in order to obtain Hardest Hit Fund mortgage assistance on an Indiana property, while living elsewhere.  Over 18-months, Khan allegedly received $29,926.46 in mortgage assistance, to which he was not entitled.

U.S. Attorney Kirsch made the announcement.

Today, an Illinois man was charged with defrauding a long-term federal economic stability program, intended to help people stay in their homes, knowing that he did not qualify,” said Christy Goldsmith Romero, Special Inspector General of the U.S. Treasury Department’s Troubled Asset Program (SIGTARP).  “We commend the Office of the U.S. Attorney for the Northern District of Indiana for standing with SIGTARP to combat fraud against homeownership preservation programs.

The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.

If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.

This case was investigated by the U.S. Department of Treasury’s Office of Special Inspector General for the Troubled Asset Relief Program (SIGTARP).  This case is being prosecuted by Assistant United States Attorney Molly Kelley.

 

 

David Daughtrey, 60, El Cajon, California, pleaded guilty in federal court today to bank fraud and tax evasion charges, admitting that over the course of several years he evaded taxes by failing to report $498,612 of income to the IRS, and also orchestrated an illegal scheme to fraudulently obtain a mortgage for his $1.8 million residence using a third party.

Daughtrey admitted that from July 2006 until April 2016, he conspired with others to commit bank fraud and tax evasion. As part of the bank fraud scheme, Daughtrey directed another individual to submit a mortgage application to Wells Fargo to purchase a $1.8 million five-bedroom residence, and to falsely claim that the funds used as down payment belonged to the third party and the residence would be used by the third party.  In reality, Daughtrey provided the funds, and the home was intended to be Daughtrey’s primary residence. Daughtrey made monthly mortgage payments of approximately $8,000 for his residence, but continued to represent to the bank that the third party owned the house.  Daughtrey later submitted a false hardship letter on behalf of the third party in an effort to get the bank to modify the terms of the loan on the home.  As part of the plea agreement, Daughtrey admitted he was the true owner of the residence at all relevant times, and promised to make a good faith effort to transfer the legal ownership of the home into his own name.

Daughtrey also admitted as part his plea that over several years, he and his spouse (who is not charged in the case) conspired to commit tax evasion by filing tax returns listing substantially less income than Daughtrey actually earned.  Daughtrey’s tax return for the year 2012 omitted at least $498,612 in income.  Daughtrey failed to report his total income in tax years 2013, 2014, and 2015, and did not file timely tax returns for subsequent years.  According to the plea agreement, the resulting tax loss to the IRS for the years 2012-2014 was $456,536.   Daughtrey agreed to pay $1,016,457.91 in restitution to the IRS, which includes the total tax loss plus penalties and interest.

As part of his plea agreement, David Daughtrey also agreed to pay over $1 million in restitution to the Internal Revenue Service. He is scheduled to be sentenced on November 16, 2020, before U.S. District Judge Larry A. Burns.

People who cheat on their taxes are cheating all other law-abiding tax payers,” said U.S. Attorney Robert Brewer. “Mr. Daughtrey blatantly disregarded his tax obligations for years.  The defendant not only abused the tax system for his own financial benefit, but conspired to commit bank fraud in order to maintain this lifestyle.” Brewer commended the excellent work of prosecutor Oleksandra Johnson and FBI and IRS agents.

The FBI is dedicated to ensuring that white collar crimes are uncovered and prosecuted,” stated FBI Acting Special Agent in Charge Omer Meisel. “Today, David Daughtrey has admitted to mortgage fraud and tax evasion.  This case illustrates that the FBI will continue to investigate those individuals that engage in fraudulent financial schemes that cause harm to our banking industry and defraud the government of tax revenue.

Our Nation’s tax system funds critical infrastructures and vital programs, including supporting our citizens and small businesses during the ongoing pandemic,” Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation. “Honest Americans’ compliance with the tax laws is imperative. Rather than pay his fair share, David Daughtrey chose to live lavishly, while intentionally failing to report his true income and evading the payment of over $400,000 in taxes.  Today’s guilty plea demonstrates that the IRS will diligently continue our important enforcement efforts despite the ongoing challenges posed by Covid-19.  We will work alongside our law enforcement partners in a collective effort to enforce the law and ensure the public trust.”

SUMMARY OF CHARGES

Conspiracy to Commit Bank Fraud and Tax Evasion, 18 U.S.C. § 371 (count 1); and

Making a False Tax Return, 26 U.S.C. § 7206(1) (count 2).

Maximum penalty:

Five years’ imprisonment and $250,000 fine (count 1)

Three years’ imprisonment and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest (count 2)

AGENCY

Federal Bureau of Investigation

Internal Revenue Service

 

Terrell Hampton, 37, was sentenced today to 119 months in prison for defrauding the City of Philadelphia, the Commonwealth of Pennsylvania, and innocent owners and purchasers of Philadelphia, Pennsylvania real estate.

Terrell Hampton, along with his father Kenneth Hampton and other family members, stole vacant homes in Philadelphia, Pennsylvania that belonged to people who could not afford to defend their properties. Kenneth Hampton was convicted and sentenced to 200 months in prison in November.

At the direction of his father, who was in prison at the time, Terrell looked for vacant properties to target, created and filed fraudulent deeds, sought buyers for the stolen properties, and kept Kenneth apprised of scheme developments. They communicated through phone calls, emails, and letters, as well as through Kenneth’s fiancée, co-conspirator Roxanne Mason.

The participants in the scheme moved into the stolen properties under the cover of fake leases that purported to grant them the right to occupancy.  They then found ways to profit from the stolen properties, either by selling the homes to good faith purchasers, by saddling them with debt, or by taking advantage of government programs designed to aid legitimate homeowners.

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

This defendant stole from people who didn’t have the resources to fight back, often resulting in victim battling against victim, homeowner against good faith purchaser,” said U.S. Attorney McSwain. “He lived up to the low example set by his father, and I am proud that the talented case team has put both of them behind bars.”

The case was investigated by the United States Secret Service, Department of Homeland Security – Office of the Inspector General, Federal Bureau of Investigation, and the Office of the Inspector General, City of Philadelphia.  The case was prosecuted by Assistant United States Attorneys Paul G. Shapiro and Sarah M. Wolfe

Lurlyn A. Winchester, 59, New City, New York, a former Justice for the Town Court of Monroe, pled guilty, in federal court, on charges that she made false statements in connection with an application for a loan she obtained to purchase a residence in Monroe, New York in order to satisfy a residency requirement attached to her position as Town Justice, and obstruction of justice for providing Federal Bureau of Investigation (“FBI”)  task force members, who were questioning her about her mortgage loan, with false documents, including fabricated rent payment receipts.

According to the allegations contained in the Indictment http://www.mortgagefraudblog.com/?s=Lurlyn+A.+Winchester as well as statements made in public court proceedings:

On or about November 5, 2013, Winchester, the defendant, was elected Town of Monroe Justice.  Under New York law, she was required to reside in Monroe in order to be eligible to hold that Town of Monroe Justice position.  At the time, she and her husband lived in a home in New City, New York (“the New City Home”), that they purchased in 1997.  In or about November 2013, Winchester attempted to purchase a condominium in Monroe, New York (“Monroe Condominium-1”).  On or about December 17, 2013, Winchester entered into a lease agreement with a tenant (“Tenant-1”) to rent the New City Home to Tenant-1.  At around that time, Tenant-1 provided Winchester with a $7,500 check.  On a later date, Tenant-1 also provided Winchester with a $1,500 check.

In or about March 2014, the deal to purchase Monroe Condominium-1 fell through and Winchester returned $7,500 to Tenant-1.  In the same month, Winchester entered into a contract to purchase a second condominium (“Monroe Condominium-2”), which was in the process of being built.

In or about June 2014, Winchester began submitting applications for a residential loan and supporting documents to representatives of Hudson United, who, in turn, submitted these items to several lenders.  Winchester represented, in the applications, that the New City Home was the couple’s “present address.”  She further represented in the applications that the loan was to be used to purchase Monroe Condominium-2.  On the loan applications and an Affidavit of Occupancy signed by Winchester, she asserted that Monroe Condominium-2 would be their primary residence.

In or about late 2014, two lenders that had received Winchester’s loan application for Monroe Condominium-2 declined to approve the loan.  The first did so because Winchester had too much debt compared with her income.  The second did so after it reviewed documents the defendant submitted, upon the lender’s request, that were supposed to show that she intended to rent out her New City Home.  The documents she submitted included a phony lease agreement and copies of the $7,500 check and $1,500 check Tenant-1 had provided to her at the end of 2013 and in early 2014, at the time Winchester was planning to purchase Monroe Condominium-1.  The lender rejected these, noting that the dates of the checks and the lease did not make sense.

Thereafter, Hudson United submitted Winchester’s loan materials to a third lender, Plaza Home Mortgage (“Plaza”).  Plaza also requested information about Winchester’s representation that she and her husband intended to move to Monroe Condominium-2 and rent out the New City Home.  In response, on or about February 6, 2015, Winchester sent Hudson United a letter in which she stated that “in regard to our intent with the current primary residence, [New City Home], please be advised that we intend on renting the premises.”  She further represented that they “already have a prospective tenant who is anxiously awaiting to take occupancy of the residence.”

On or about February 27, 2015, Plaza informed Hudson United that it placed the loan in “suspend for decline status” because of insufficient income.  On or about March 20, 2015, based on Winchester’s representation, Hudson United informed Plaza that there would be rental income from the New City Home.  As a condition for closing on the loan, Plaza requested, among other things, a copy of a fully executed 12-month lease and a canceled check for a security deposit.

In response, on or about March 27, 2015, Winchester submitted to Hudson United, which then submitted to Plaza, the following items containing false statements: (1) a phony lease agreement providing that Tenant-1 was to going to pay $4,500 a month to lease the New City Home; and (2) a copy of two checks, made out to Winchester, each in the amount of $4,500, dated March 23, 2015, signed by Tenant-1, and drawn on Tenant-1’s bank account.  The checks each contained a false notation indicating it was for the security deposit or first month’s rent for the New City Home.  Unbeknownst to Hudson United and Plaza, Tenant-1 did not intend to rent the New City Home and Tenant-1 did not provide the money to pay for a security deposit or first month’s rent.  In fact, Winchester provided Tenant-1 with $9,000 to cover the two $4,500 checks Tenant-1 issued to Winchester.

On or about April 2, 2015, Winchester and Plaza closed on the loan and Plaza funded the purchase of Monroe Condominium-2.  Tenant-1 never moved to the New City Home and Winchester did not move to Monroe Condominium-2.

On or about July 28, 2016, members of an FBI task force conducting an investigation interviewed Winchester, at her office in New City, about the statements she made in connection with the loan she received from Plaza Home Mortgage.

Thereafter, the defendant met with Tenant-1, enlisted Tenant-1’s support in providing a false story to investigators, and had Tenant-1 initial fabricated “rent receipts” that indicated that Tenant-1 made a total of $9,000 in incremental cash payments to Winchester, between May 15, 2014, and January 16, 2015, as advance rent payments for the New City Home.

On or about August 1, 2016, task force members returned to Winchester’s New City office and interviewed her again.  During the interview, she gave them a number of documents designed to support her false account that Tenant-1 intended to rent the New City Home but decided, after the closing on Monroe Condominium-2 on April 2, 2015, not to move in.  The documents she provided to the task force members included, among other things, copies of the false and fabricated “rent receipts.”

Winchester pled guilty to both counts of an indictment before U.S. Magistrate Judge Judith C. McCarthy.  The first charged her with making false statements to a mortgage lending business, 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.  The second charged her with falsifying records in a federal investigation, with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of a federal department or agency, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, made the announcement.

U.S. Attorney Geoffrey S. Berman said:  “As she admitted in court today, Lurlyn Winchester, in an attempt to fraudulently satisfy a residency requirement for a judgeship, lied and provided fake documents to secure a mortgage.  She then lied to FBI task force officers and provided them with fake documents in an attempt to cover up that crime.  Winchester’s lack of integrity and honesty did not merit a term on the bench.  Her crimes will likely earn her a term in prison.”

Winchester’s sentencing is scheduled for August 28, 2018, at 2:00 p.m.

Mr. Berman praised the outstanding investigative work of the FBI.  He also thanked the Orange County Sheriff’s Office and the Orange County District Attorney’s Office for their assistance.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorney Margery B. Feinzig is in charge of the prosecution.

Michael Quiroz, Tucson, Arizona, was sentenced by U.S. Chief District Judge Raner C. Collins to 36 months in prison.  Quiroz was previously found guilty at trial of wire fraud and conspiracy to commit wire fraud.

The evidence established that Quiroz, a loan officer and mortgage broker, was involved in a multi-year, multi-million dollar cash-back mortgage fraud conspiracy.  Quiroz and others recruited straw buyers to purchase residential properties at inflated prices and Quiroz also helped the straw buyers fraudulently obtain the loans needed to purchase the properties.  The methods used to obtain the loans included fake lease agreements, fake letters of employment, fake letters of credit, and false statements of intent to occupy a property as a primary residence.  Portions of the fraudulently-obtained mortgages were diverted to the bank accounts of Quiroz’s co-conspirators, who would thereafter send kickbacks to Quiroz.  Many of the properties purchased during the scheme eventually went into foreclosure, and the lenders’ losses relating to Quiroz’s conduct during the conspiracy totaled approximately $2.3 million.

The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation.  The prosecution was handled by the U.S. Attorney’s Office, District of Arizona, Tucson.

 

Mahendra Prasad, 55, Fremont, California, was sentenced by to 15 months in prison and ordered to pay $328,000 in restitution for his role in a mortgage fraud scheme.

On May 22, 2017, Prasad pleaded guilty to one count of mail fraud affecting a financial institution. Co-defendants Jyoteshna Karan, Praveen Singh, Sunita Singh and Nani Isaac are scheduled for a jury trial in U.S. District Court in Fresno, California, on Monday, December 11, 2017.

According to court documents, in 2006, Prasad caused loan application packages that contained false statements to be submitted to a mortgage lender in order to buy a property in Sacramento. The false statements included statements concerning Prasad’s employer, income, and purported intention to occupy the property as his primary residence. Following his fraudulent purchase, Prasad, with the assistance of others, rented the property as Section 8 housing and collected rents. Prasad did not reside in or occupy the property as his primary residence.

In 2013, Prasad applied to a bank to sell the property to another person at a loss to the bank. He falsely claimed to the bank that the “short” sale was an “arm’s length” transaction, and that neither he nor the buyer were related by commercial enterprise. Prasad’s conduct caused a loss to a financial institution of approximately $328,000.

Prasad was sentenced by U.S. District Judge Lawrence J. O’Neill.  The sentence was announced by U.S. Attorney Phillip A. Talbert.  The case was the product of an investigation by the Federal Bureau of Investigation, the Stanislaus County District Attorney’s Office, the Federal Housing Finance Agency Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General, with assistance from the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant U.S. Attorneys Henry Z. Carbajal III and Christopher D. Baker are prosecuting the case.

 

 

Sergey Shchirskiy, 41, Sacramento, California, was sentenced to seven years and 10 months in prison for his participation in two mortgage fraud schemes and one tax fraud scheme.

According to court documents, Shchirskiy pleaded guilty to one count of wire fraud in each of the two mortgage fraud cases, as well as one count of conspiracy to defraud the United States and one count of aggravated identity theft in the third tax fraud case.

According to the plea agreement, Shchirskiy was a loan processor in one mortgage fraud scheme (2:11-cr-514). Between April 2007 and November 2007, the co-conspirators used straw buyers to buy properties and then take out Home Equity Lines of Credit on the houses using fraudulent documents and statements. Shchirskiy helped to create the fraudulent supporting documents. All of the properties were foreclosed on, resulting in at least $1.5 million in losses to lenders.

According to the plea agreement in the second mortgage fraud scheme (2:12-cr-060), in April 2007, Shchirskiy recruited straw buyers to purchase a houses based on fraudulent loan applications. The applications gave false information about the buyer’s employment, income, assets, and intention to occupy the properties. The properties were foreclosed upon and resulted in a loss of more than $1.2 million to lenders.

According to the plea agreement in the tax fraud scheme (2:14-cr-198), between March 2011 and April 2011, Shchirskiy conspired with others to obtain false tax refunds by submitting fraudulent claims using the identities of various individuals, at least eight of which were stolen. Shchirskiy claimed Earned Income Tax Credit based on false claims of employment from California’s In-Home Supportive Services program. Shchirskiy and his co-conspirators made approximately 80 attempts to file fraudulent tax returns, attempting to receive $661,286 in fraudulent returns from the Internal Revenue Service. The IRS ultimately issued approximately $88,728 in fraudulent refunds.

U.S. Attorney Phillip A. Talbert announced the sentenced and U.S. District Judge Troy L. Nunley presided.  The cases were the product of investigations by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Heiko Coppola and Michele Beckwith prosecuted the cases.