Police Officer from DC Convicted of Tax Fraud

Posted by on Oct 24, 2015 in Tax Fraud Cases |

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According to a press release by the Department of Justice, a DC police officer is facing prison time and a fine for tax fraud. After a 5-day trial, he was convicted of tax fraud after not only claiming that he was exempt from income tax withholding but he also filed false claims and submitted not one, but three false W-4 forms. In fact, the police officer, who used to go by the name of Jamal Adams and now goes by the name IshmealHeru-Bey, did not file income tax returns in time between 2005 and 2012 and instead falsely submitted the three W-4 forms. He also claimed deductions for vehicle mileage, meals, uniforms, and dry cleaning. However, he was on paid leave at the time he claimed these deductions so he was never entitled to them at all.

Indicted on Tax Fraud

According to WUSA, he was indicted on tax charges in March of this year. He also filed false tax returns in 2011 and 2014. The evidence from this showed that the tax loss for the years between 2005 and 2011 and for the year of 2014 was for over $90,000. Also, in 2010, he falsely filed documents that were signed under the penalties of perjury with the United States Bankruptcy Court for DC in which he failed to file his income tax returns.

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If Heru-Bey is convicted, he faces up to 13 years in prison and a $250,000 fine for each count. He will be sentenced on January 7, 2016. He actually failed to file the normal tax returns for 8 years. According to The Washington Post, the deductions he claimed were unreimbursed deductions and he would not have been entitled to them in the first place.

Submitted False Income Tax Returns

300px-US-InternalRevenueService-Seal.svg_222According to a Washington DC police spokesman, Heru-Bey has not been employed by the DC police department since August. According to the Post, he submitted those false income tax forms, the three W-4’s to keep the department from withholding taxes from his paycheck.

The special agents of the Internal Revenue Service Criminal Investigation that made the investigations and the Tax Division Trial Attorneys, Erin Pulice and Jeffrey McLellan, the prosecutors in the case got special commendations from Acting Assistant Attorney General, Cirolao.

Although he faces these criminal charges and the hefty fine of $250,000 for each count of tax fraud he committed, according to the press release, he is innocent until proven guilty just like anyone else.

Heru-Bey is from Glenarden, Maryland and has been convicted of trying to obstruct the Internal Revenue Service.

About Tax Fraud

Tax fraud is a very serious issue and one can be sent to prison and have to pay back all of the money they stole from the IRS. Tax fraud happens when someone fails to file their income tax forms on time or at all with the Internal Revenue Service for money made from the previous year from the job they are working at.

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Fifth Third Settles Mortgage Fraud for $85,000,000

Posted by on Oct 24, 2015 in Law Firms PR, Tax Fraud Cases |

Fifth Third bank has admitted to committing fraud which will cost taxpayers millions of dollars. The bank admitted to improperly certifying over 1,400 loans to mortgages although they knew they were defective. These mortgage loans were not eligible for Federal Administration Housing insurance and this will end up costing the taxpayers millions of dollars.

Bank Will Pay $85 Million in Fraud Claims

fifth third bank_1378228794129_849615_ver1.0_640_480According to USA Today, the Cincinnati based bank will now have to pay $85 million in civil fraud claims. In fact, between the years of 2003 and 2013, the FHA lost millions of dollars because of the bank allowing these bad loans to go through. This happened while the real estate collapse was starting and the foreclosure crisis was continuing.

The whole thing about this is that Fifth Third bank found out the loans were defective and did not report their findings to the government until 2012. They knew the loans would not be eligible for FHA insurance but did not say a word about it until it was too late. In fact, the U.S Department of Housing and Urban Development ended up paying out on the insurance claims for 519 of those defective loans.

Made False Representations About the Loans

As well as all of this, the bank made false representations about these loans before and during the time that it accepted $3.4 billion in federal money from the Troubled Asset Relief Program. Admitting to this in the settlement, Fifth Third participated in this program from 2008 to 2011.

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According to federal authorities, the bank should have reported this because ultimately the taxpayers end up having to pay the bill when the FHA covers bad loans like this.

In a prepared statement, U.S Attorney PreetBharara said, “Federal insurers rely on banks when they promise that the mortgage loans they originate are eligible for that insurance. When banks discover that some of the loans are lemons and that their promises of quality were false, as Fifth Third Bank did, they must come forward and report it promptly so that taxpayers don’t get stuck with the bill.”

Fired the Employees Responsible

Breach-of-Contract-FrameAngel-300x199Although Fifth Third Bank fired the employees that were responsible for not reporting these bad loans to the government, it has not yet been determined whether or not they faced any other consequences for their actions. Fifth Third has taken full responsibility for their actions and has agreed to cover federal losses on the bad loans.

According to wcpo 9 Cincinnati, this is the second major fraud claim for the bank within 7 days. The bank may also have to pay millions more. They settled out of court with two whistleblowers, John Ferguson and George Mann, and will have to pay them each $6.37 million.

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Fifth Third Bank actually had 60 days to report the bad loans they ended up approving but they did not report them until between 2012 and 2014.

Last week, the bank settled out of court to pay $18 million to settle the allegations that it discriminated against blacks and Hispanic consumers since they charged some of them higher interest rates on auto loans.

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