In the following press release the FBI in Honolulu announced that a federal grand jury in Honolulu, Hawaii today returned a 17-count indictment of George Lindell, age 65, and Holly Hoaeae, age 39, for operating an alleged pyramid, or Ponzi, scheme between January 2005 and November 2010. The indictment charges Lindell and Hoaeae, who were Maui residents at the time of the alleged offenses, with 13 mail fraud and three wire fraud violations and one count of money laundering conspiracy, each of which carry a maximum sentence of 20 years’ imprisonment. The indictment also seeks a forfeiture of various properties and assets, including up to $8,626,588.86, which the indictment alleges represents the total amount of proceeds obtained as a result of the fraud. In addition, the defendants face fines of up to $250,000 on each of the fraud violations and up to $500,000 or twice the value of the funds or financial instruments involved on the conspiracy charge.
Adam P. Moellers, 35, of Mason, Ohio, was sentenced to 36 months in prison, and Gary P. Dailey, aka Gary Klump, 33, of Covington, Kentucky, was sentenced to 21 months in prison in U.S. District Court today for engaging in a foreclosure rescue scheme through a company called American Equity Group (AEG). A third defendant, Perry Bensick, 37, of Monroe, Ohio, was sentenced on May 21 for his role in the scheme to a year and a day in prison. Each will be placed under court supervision for three years after their prison terms end.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Ohio Attorney General Mike DeWine and Kevin Cornelius; Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI), announced the sentences imposed by U.S. District Judge Michael Barrett.
United States Attorney Robert E. O’Neill announces that Karen Galo (33, Key West) pleaded guilty yesterday to unlawfully disclosing a federal grand jury subpoena to a third party with the intent to obstruct a judicial proceeding. Galo faces a maximum penalty of 5 years in federal prison.
According to the plea agreement, on October 9, 2008, Galo, in her capacity as an officer of Key West Bank, received two federal grand jury subpoenas related to an investigation into mortgage fraud and money laundering. Galo knew the subject of the grand jury subpoenas. After receiving the grand jury subpoenas at the bank, Galo contacted the subject and sent him the subpoenas by fax. Galo disclosed the subpoenas to the subject with the intent to obstruct the investigation being conducted in Tampa. Included with the grand jury subpoenas served on the bank was a warning letter notifying Galo that it is a federal crime to disclose a federal grand jury subpoena received by a financial institution. Galo included the letter in the fax sent to the subject, along with the two subpoenas. Two days after the subject received the grand jury subpoenas, he fled the United States.
United States Attorney Joseph H. Hogsett announced this afternoon the arrest and charging of five defendants who are alleged to have participated in a scheme to abuse the Indianapolis Land Bank program for their own benefit. The indictment alleges that the two City of Indianapolis employees and three co-conspirators engaged in wire fraud and bribery in order to facilitate a number of fraudulent land purchases.
“These charges involve a conspiracy to defraud the taxpayers of Indianapolis and abuse a local housing program designed to help rebuild this city’s most troubled neighborhoods,” Hogsett said. “For those in positions of public trust, both here in Indianapolis and across the state, I hope these developments have confirmed the message: the era of corruption is over.”
“The FBI criminal program’s top priority is public corruption,” said FBI Special Agent in Charge Robert Jones. “The integrity of our public officials is the cornerstone of fair governance.”
NBC Bay Area TV Investigation Unit said today [PDF] [Link] that a prominent San Francisco real estate broker could lose his license after the NBC Bay Area Investigative Unit uncovered what his investors call a decade of deception. The broker attracted more than a dozen investors to false promises of profit from prime real estate in a historic San Francisco neighborhood.
The allegations involve millions of dollars and on May 3, 2013 the California Dept of Real Estate filed an Accusation against WB Coyle and his companies Telegraph Hill Properties, Inc and THP-SF, Inc. Below is the Video news report from NBC Bay Area which has more detail.
Alabama Attorney General Luther Strange announced the arrest yesterday of a Prattville woman for four counts of residential mortgage fraud, two counts of first-degree theft and two counts of first degree theft by deception. Lynda Branch, 59, formerly operated Professional Closing and Title LLC, doing business in Prattville as Pro Close. Branch was arrested by the Autauga County Sheriff’s Office.
My thanks to Don Fletcher and the Montgomery Advertiser for the photograph.
Attorney General Strange’s Office presented evidence to an Autauga County grand jury on May 8, resulting in Branch’s indictment on May 10. Specifically, the indictment charges: One count of residential mortgage fraud in that Branch, knowingly and with intent to defraud made a material deliberate misrepresentation, by certifying in a HUD-1 Settlement Statement that Professional Closing and Title would disburse $140,325 to GMAC to pay off first and second mortgages on behalf of a consumer
In the following press release Nassau County District Attorney Kathleen Rice announced today that a disbarred attorney has been indicted on multiple felonies for stealing more than $4 million from multiple individuals and banks he was representing in real estate deals, including his own wife.
James Kalpakis, 52, of Old Westbury, was arraigned this morning on a grand jury indictment charging him with two counts of Grand Larceny in the First Degree, five counts of Grand Larceny in the Second Degree, four counts of Grand Larceny in the Third Degree, 10 counts of Criminal Possession of a Forged Instrument in the Second Degree and two counts of Offering a False Instrument for Filing in the First Degree.
Preet Bharara, the United States Attorney for the Southern District of New York, announced that Erin Davis, former sales manager for the now defunct Buy-A-Home real estate brokerage business, was sentenced today in Manhattan federal court to 24 months in prison for participating in a multi-million dollar mortgage fraud scheme. DAVIS and Buy-A-Home’s owner, Mitchell Cohen, were indicted in July 2012. DAVIS pled guilty in January 2013 to one count of conspiracy to commit mail, wire and bank fraud, and was sentenced today before U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Preet Bharara stated: “At the ground level of the mortgage crisis were people like Erin Davis, a top manager at Buy-A-Home, who orchestrated falsehoods and moved money around to generate millions of dollars of fraudulently obtained mortgages. This Office remains committed to using every legal means available to hold to account those who helped contribute to the home mortgage crisis and to FHA’s dire financial straits.”