Articles Posted in Fraud and Embezzlement

On August 13, United States Attorney Barbara L. McQuade announced that Monique Gray, owner and operator of MO Tax Services in Detroit, had been sentenced to 30 days in prison for filing a false federal income tax return. Gray also owns a trucking company, U&M XSpress, Inc.

Gray pleaded guilty to the charge, which was in connection with under-reporting of gross receipts for the tax year 2008. According to court documents, Gray’s tax business and trucking firm generated substantial income during 2008. Businesses are required under the law to correctly report their gross receipts for a given year, however Gray did not report all of the gross receipts. In fact, Gray’s Form 1040 for 2008 indicated gross receipts of $5,458 on a Schedule C Profit or Loss from Business, when the business actually had receipts of $44,982. She also had gross receipts of more than $122,000 from her trucking company, although she reported only $6,000.

Ultimately, Gray knew when she signed the 2008 Individual Tax Return 1040 form that the information she had provided was false.

In addition to spending 30 days in prison, Gray is required to pay restitution of $102,899 as ordered by U.S. District Judge Paul D. Borman.

Acting Special Agent in Charge Jarod Koopman of the IRS – Criminal Investigation unit said in a release that Gray’s actions were an affront to other business owners and taxpayers who are honest in filing their federal income taxes. He also said that her attempt undermines the tax system, and that the IRS – Criminal Investigation will continue the aggressive pursuit of others who believe they can commit tax fraud and get away with it.

Continue reading

In July of 2013, seven individuals were indicted for the roles they played in a Detroit mortgage fraud operation. Those who were indicted by a federal grand jury in the Eastern District Court of Michigan included Peter Allen, Suhail Hallak, Al Karana, Wasseem Shamoun, Joey Murad, Jeffrey Najor, and Jason Najor. The defendants were alleged to have used fraudulent information for the purpose of obtaining mortgage loans from banks and lending institutions beginning in January of 2006, and continuing until December of 2008.

It was announced by the Department of Justice on August 12, 2014 that Wasseem Shamoun has pleaded guilty to conspiracy to commit bank fraud. Shamoun pleaded guilty in the U.S. District Court for the Eastern District of Michigan. According to the July 2013 indictment, the scheme resulted in area banks and financial institutions paying out fraudulent mortgage loan funds that totaled approximately $10 million.

Five of the seven defendants were charged with 20 counts of bank fraud each, including Shamoun. Several agencies assisted in the investigation including the DEA (Drug Enforcement Administration), the IRS – Criminal Investigation, and the FBI. According to the release issued by the Department of Justice, Shamoun was personally responsible for a loss of approximately $394,000 to local financial institutions.

Shamoun and his co-defendants are said to have devised a scheme in which property was purchased in amounts ranging from $5,000 to $40,000 per home. The defendants then recruited straw buyers who would be paid a fee to submit fraudulent home mortgage loan applications. The prices paid to the defendants by straw buyers for single family homes ranged from $90,000 to $120,000 per home, with the defendants paying themselves $10,000 to $50,000 commissions.

Shamoun is scheduled to be sentenced on December 2, and faces a $1 million fine and statutory maximum prison term of 30 years for his role in the conspiracy. Continue reading