Ohio Man Pleads Guilty to Tax and Mortgage Fraud
On October 12, 2012, the Internal Revenue Service announced that Steven R. Hinz pleaded guilty to mortgage fraud charges and tax fraud charges in a Cleveland federal court. Hinz’s plea is the latest plea in numerous tax fraud charges in the area. Heather L. English, Patricia A. Polk, and William E. Phillips, III were all charged in December of 2011 for tax fraud charges.
In total, Hinz pleaded guilty to “one count of conspiracy to defraud the United States, one count of making a false 2008 income tax return, 15 counts of aiding and assisting the preparation of false income tax returns, and one count of conspiracy to commit bank fraud involving a mortgage fraud scheme.”
Polk pleaded guilty to tax fraud and bank fraud. English pleaded guilty to tax fraud and aiding and assisting Hinz’s false 2008 tax return. Phillips pleaded to tax fraud. All of the defendants were arrested in different parts of the United States, including Sarasota, Miami, and Los Angeles.
According to the indictment, Hinz planned to defraud the United States by using the Original Issue Discount (OID) process. He filed false 1099-OID forms that claimed multiple financial institutions withheld significant amounts of federal income tax. Hinz owned a real estate business in Youngstown, and he helped claim at least 17 false tax returns up to $3 million in value.
The indictment also states that Hinz used his real estate business from December of 2006 to May of 2009 to defraud Wells Fargo Bank and Huntington National Bank. He submitted false mechanic’s liens for jobs that were never done that caused the banks to issue inflated mortgage loans based on the false value of the property.
Hinz faces a maximum sentence of 83 years in prison. Polk faces a maximum of 35 years, and Phillips and English face 5 and 8 years.
Source: Federal Bureau of Investigation
Comments
Must Read
Mail Fraud Quick OverviewMail fraud refers to any deceitful crime that includes the use of the postal system.
Accountant Fraud At A GlanceAccountant fraud (or corporate accounting scandals) often occurs as a result of an accountant not disclosing factual statements to their clients (individuals or businesses) about the state of their finances.
All You Need To Know About Mail Fraud ChargesMail fraud charges are used most frequently in federal white collar crime cases to either make an initial charge or add a charge to a list of existing ones.
All You Need To Know About Reporting BlindnessOne of the most common disability fraud types Disability fraud falling into the category of "reporting blindness" can also include criminals taking advantage of acts intended to help the legally blind return to work.
All You Need to Know About Supreme Court CasesThere are two cases that involve the proper criminal procedure involving the prosecution of wire fraud.
All You Need to Know About The History Identity TheftIdentity theft, though it has taken on new forms and has become significantly more common, is not a new crime.
Bait and Switch DefinitionIt may not necessarily be all that obvious all the time, but the bait and switch tactic used by both the retail and political world should be of no surprise to people living in nations which are fueled by consumerism and politics.
Bankruptcy Fraud At A GlanceBankruptcy fraud is any kind of fraud involving filing for bankruptcy in an attempt to gain some kind of profit from the overall scheme.