Category Archives: Rap Sheet

Tarsem Singh Sentenced for SBA Fraud

A court in Washington has handed a 15 months prison sentence to an Indian-American businessman for fraudulently obtaining contracts worth $6 million from a federal program created to help minority-owned small businesses.

Tarsem Singh, 61, of Fairfax, VA, owned a company that benefited from the Small SBA-revBusiness Development Program run by the Small Business Administration, but after the company became ineligible for the program, he set up another shell company which he used to obtain over 25 federal contracts valued at $6 million, authorities stated.

In a release by SBA Inspector General Peggy E. Gustafson and Washington federal prosecutor Channing D. Phillips, the actual names of the companies were not disclosed, but were identified only as “A” and “B”. The first company which specialized in building construction and renovation was established by Singh and his wife, and it received contracts legitimately for nine years until January 2009, when the company graduated from the program and became ineligible to obtain such contracts.

Singh immediately set up the fake company in which he made himself the vice president, and in making it appear to meet the SBA eligibility requirements, he continued to receive federal contracts under the program. Read More More

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Ex-Bank President Paul Doughty Convicted of Fraud

The former president and chairman of a defunct Oklahoma bank has been convicted by a jury on charges of fraud in connection to approvals he made on fraudulent loans for real estate and other investments, the U.S. Attorney’s Office for the Western District of Oklahoma has announced.

Paul Doughty, 67, who served as the president and chairman of First State Bank of Altus, Paul Doughtywas found guilty of 10 charges of bank fraud, conspiracy to commit bank fraud, misapplication of bank funds, making a false bank entry and authorized issuance of a bank loan while he was in charge at the bank.

From 2006 to 2007, Doughty and co-conspirator, Fred Anderson, engaged in a scheme that involved recruiting straw buyers to obtain loans for 19 Colorado real estate lots that cost about $700,000 each, the trial evidence has shown.

Doughty then approved and issued loans on 14 lots to buyers which amounted to more than $10,000,000 in loan proceeds for the seller, Mountain Adventure Property Investments, a company in which Anderson served as president and manager, the U.S. Attorney’s Office stated. Read More More

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Cuevas Pleads Guilty to Bank Fraud

A former state representative for the 75th District of CT has pleaded guilty to his role in a bank fraud scheme that involved his mortgage loan applications, the U.S. Attorney for the District of Connecticut has announced.

Victor Cuevas, 52, of Bristol, CT, was an employee of the City of Waterbury, and according

WATERBURY CT. 20 June 2016-062016SV05-From left, Victor Cuevas of Waterbury leaves Federal Court with his attorney Martin Minnella in New Haven Monday. Steven Valenti Republican-American

WATERBURY CT. 20 June 2016-062016SV05-From left, Victor Cuevas of Waterbury leaves Federal Court with his attorney Martin Minnella in New Haven Monday.
Steven Valenti Republican-American

to court documents and statements made in court, in 2013, while serving as a City of Waterbury employee and the state representative, Cuevas applied for a Federal Housing Administration (FHA) loan in order to fund the purchase of a house in Bristol.

FHA loans are federally insured by the U.S. Department of Housing and Urban Development, and loans have certain restrictions on the funds that can be used for purchasing properties. In order to conceal the source of the funds, Cuevas connived with some Waterbury employees to make several misrepresentations to the lender that he was using cash gifts to fund the purchase when, in fact, the money were not gifts but loaned to Cuevas for the purpose of purchasing the property. Read More More

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Frasca Charged with Loan Fraud

Scott FrascaProsecutors are accusing a former Peabody City Council official of defrauding several banks and credit unions of more than $68,000 in loans.

Scott Frasca, 48, of Peabody, MA who formerly served as a Peabody library trustee and ran unsuccessfully for City Council in 2013, pleaded not guilty to five counts of obtaining a loan through fraud, forgery, passing a forged document and obtaining a signature by fraud before Judge Thomas Drechsler at the Salem Superior Court.

Frasca operated a charity organization, ‘the Making a Difference in Peabody Foundation’ since 2002, he was also on the board of directors of the Peabody Area Chamber of Commerce, and was the former chairman of Peabody’s Republican City Committee. These positions made him a trustworthy recipient of loans from the banks and credit unions, according to prosecutors.

Between February and March 2015, Frasca obtained more than $68,000 in personal loans from five banks and credit unions, prosecutor Quentin Weld told the Judge. Read More More

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Jelen Charged For Alleged Fraud on Valor Credit Union 

The former CEO of Scranton-based Valor Credit Union, formerly known as Tobyhanna Federal Credit Union, is now facing charges of bank fraud and attempted bank fraud, according to a release from the U.S. Attorney’s Office for the Middle District of Pennsylvania.

Sean E. Jelen, 33, allegedly committed and attempted to commit a series of fraudulent Sean E Jelenactivities from July 2014 to August 2015, U.S. Attorney Peter Smith said.

For the most of that one year period, Jelen was serving as the CEO of Valor, and he is accused of using his position at Valor to create many forged and altered documents which were then used for fraudulent activities.

The accusations filed in U.S. District Court in Scranton allege that Jelen carried out a scheme to defraud Valor of approximately $718,000 in funds which were used to pay for his personal credit card and spent on his graduate tuition, his wife’s birthday bash and his sponsorship of a golf tournament. Read More More

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Angerman Pleads Guilty to Alliant Credit Union Fraud

According to an announcement by the United States Attorney for the Northern District of Illinois Zachary T. Fardon, an Elgin resident has pleaded guilty to federal charges of bank fraud and money laundering.

Stephen T. Angerman, 48, of Elgin, IL, pleaded guilty to bank fraud, money laundering, Alliant Credit Unionand testifying falsely in a bankruptcy case before U.S. District Judge Frederick J. Kapala.

From December 2009 through March 2010, Angerman executed a scheme to fraudulently obtain a $510,000 loan from Alliant Credit Union and a $64,590 loan from Prairie Community Bank in order to purchase a home on Wrenwood Circle in Elgin. Angerman admitted to including false statements regarding his employment, assets, and liabilities in his loan application to Alliant, his plea agreement stated.

He also admitted to including fictitious bank account statements, pay stubs, a W-2 earnings form, and a fraudulent Certificate of Gift form to the credit union in support of his application, and based on these misrepresentations, Alliant issued him the loan. Read More More

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Alexandria Couple, Attorney Convicted in Loan Fraud Scheme

An Alexandria-based couple who owned a real estate company and an attorney, have been convicted of fraud in a scheme to fraudulently obtain more than $2 million in loans.

Deion A. Duruisseau, 47, and Lashawn A. Duruisseau, 41, both of Alexandria, LA, and Fraudattorney Harold L. Lee, 55, of Pineville, LA, were found guilty by a federal jury on one count of conspiracy to commit bank and wire fraud, and two counts of bank fraud.

According to evidence presented in court, from June 2004 to October 2009, the co-conspirators used fraudulent information to obtain loans totaling $ 2,119,000 on more than 30 properties. Using their company Billionaire Properties, the Duruisseaus recruited buyers, mostly from their church, and directed them on what false information they should include in their mortgage applications.

Deion Duruisseau then went on to negotiate an initial contract with the seller, before also negotiating the price and other conditions of sale for the investment property. Deion would then use the same property’s address but a recruited buyer’s information to create a second contract.  Read More More

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Sanchez-Badia Gets 12 Years for Defrauding Ex-Im Bank

A Miami based businessman has been sentenced to 12 years in prison for his role a scheme to defraud the Export-Import Bank of the United States and two commercial lenders out of more than $11 million, the U.S. Attorney’s Office for the Southern District of Florida announced.

Guillermo Sanchez-Badia, 61, was the owner of Culter Bay-based export company ACE Export-Import BankProducts and Miami-based lumber export company Timber Depot, which also had operations in Puerto Rico. He pleaded guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering.

According to court documents, Sanchez-Badia was involved in a scheme of creating false transaction documents such as invoices and purchase orders which he then used to secure credit. Together with his daughter Isabel Sanchez and her husband Gustavo Girol, who are co-conspirators in the case, Sanchez-Badia sold the fake invoices for cash to two commercial lenders in a process known as factoring. And about 90% of the value listed on the invoices went to the co-conspirators after each factoring, according to the U.S. Attorney’s Office.

As stated in court records, Isabel Sanchez owned the Miami-based Ex-Im of America, while her husband Gustavo was also the owner of Global Export Machinery and Zaragoza Exports, both based in Miami. By using their different companies, Gustavo, his daughter and her husband were able to create false invoices which they used for the scheme.

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Bakersfield Pair Plead Guilty to Bank Fraud

Acting United States Attorney Phillip A. Talbert has announced that a Bakersfield man and woman have both pleaded guilty to charges of bank fraud and aggravated identity theft.

Edgar Alexander Gomez, 41, and Jennifer Grace Barthel, 36, both of Bakersfield, US MailCA, made a guilty plea on charges of conspiracy to commit bank fraud before U.S. District Judge Lawrence J. O’Neill. Gomez also pleaded guilty to an additional charge of aggravated identity theft.

From July to September 2012, Gomez and Barthel stole identity documents from the U.S. mail, including drivers’ licenses, social security cards, and credit and debit cards. The pair also made several attempts to open bank accounts at federally-insured financial institutions using the identities of people whose mail they had stolen, and even tried to cash a check using a forged signature of the payee, as stated in court documents.

In his statement, San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service said, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex identity fraud schemes and to protect postal customer’s mail and personal information from theft.”

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NC Attorney Joseph Kinlaw Pleads Guilty to Mortgage Fraud

According to a release by the U.S. Attorney’s Office for the Eastern District of North Carolina, an attorney and real estate developer based in North Carolina has pleaded guilty to bank fraud charges in connection to a mortgage fraud scheme that led to about $18 million in losses for lenders, title insurers and investors.

Joseph Kinlaw, 63, who was a licensed North Carolina attorney, pleaded guilty to
BB&T and First Citizenshis role in a scheme that allegedly involved falsifying property information in order to obtain loans from BB&T and First Citizens Bank for the purported purpose of developing residential real estate near Camp Lejeune, a Marine Corps base in North Carolina.

Kinlaw represented and operated various real estate investment and development entities on behalf of investors. Between January 2011 and April 2013, Kinlaw used those entities to obtain fraudulent loans from BB&T and First Citizens Bank, and he concealed these loans from the investors by falsifying the legal descriptions of the loan collateral, and by falsifying releases of the collateral, according to the release by the U.S. attorney’s office.

Kinlaw then used to use the collateral for other real estate investment activities and to secure more loans. To further sustain the scheme, Kinlaw released the bank’s collateral before the loans had been satisfied, thereby passing on the value of the collateral to third parties.

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