MORTGAGE & TAX SWINDLER GETS 9 YEARS IN PRISON - BOGUS MECHANICS LIENS

By
Education & Training with (retired) TN LIC# 290452

Steven Hinz Sentenced to Nine Years in Prison, Ordered to Pay More Than $500,000

U.S. Attorney’s Office January 30, 2013
  • Northern District of Ohio (216) 622-3600
 

Steven R. Hinz was sentenced to nine years in prison and ordered to pay more than $500,000 in restitution for his role in leading separate tax and mortgage fraud conspiracies, said Assistant Attorney General of the Justice Department’s Tax Division Kathryn Keneally, United States Attorney for the Northern District of Ohio Steven M. Dettelbach, and Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Darryl K. Williams.

U.S. District Judge Patricia Gaughan ordered Hinz to pay $458,302 in restitution to Wells Fargo Bank, $50,069 to the IRS, and $36,211 to the Department of Housing and Urban Development.

Hinz pleaded guilty last year 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.

The other three defendants charged in case—Heather L. English, Patricia A. Polk, and William E. Phillips, III—have also pleaded guilty.

All four defendants were indicted in December 2011 on the tax conspiracy and various false return charges. Hinz was arrested in Miami, Florida, in January 2012, and Polk was arrested in Sarasota, Florida, in February 2012. Phillips was arrested in Los Angeles in June 2012 after being deported from the Philippines upon request of the U.S. government.

According to court documents, Hinz promoted a scheme to defraud the United States by filing false federal income tax returns claiming large tax refunds using the so-called “OID process.” The OID process involved the preparation of fictitious IRS Forms 1099-OID, Original Issue Discount, falsely reporting that financial institutions, creditors, and other entities had withheld large amounts of federal income tax on behalf of the defendants and other taxpayers, with respect to non-existent income.

Hinz and English recruited potential clients by promoting the OID scheme to investors in and employees of Hinz’s real estate business in Youngstown, Ohio, as well as to individuals they knew from organizations known at different times as NeoThink, NeoTech, and the Society of Secrets.

English prepared or directed the preparation of the 1099-OID forms and prepared and electronically filed the tax returns. Based on these fictitious withholdings, at least 17 false tax returns for the year 2008 were filed with the IRS, claiming false refunds totaling over $3,000,000. Under the scheme, taxpayers recruited by Hinz were to pay 20 percent of their refunds to Hinz and English, split equally between them, sometimes referred to as commissions and sometimes labeled as “donations.”

According to court documents, from approximately December 2006 through May 2009, Hinz conducted his real estate business in part through a scheme to defraud two federally insured banks, Wells Fargo Bank and Huntington National Bank, that provided mortgage loans to the investors.

The scheme was carried out through the filing of false mechanic’s liens for work not actually done and the providing of undisclosed down payment assistance to the investors.

The scheme was designed to induce the banks to make mortgage loans based on false representations concerning the true price and value of the properties, the sources of down payments, and the disposition of loan proceeds.

Polk began conspiring with Hinz to conduct the scheme April 2008.

The case is being handled by Assistant U.S. Attorneys John M. Siegel and Henry F. DeBaggis and Tax Division Trial Attorney Robert C. Kennedy, following investigation by the Internal Revenue Service-Criminal Investigation, the Office of Investigations of the Department of Housing and Urban Development Office of Inspector General, and the Federal Bureau of Investigation.

source: FBI
Posted by



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Tennessee Shelby County Memphis
Groups:
Realtors®
Crime
Tags:
real estate fraud

Spam prevention
Show All Comments
Ambassador
1,229,631
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I had someone call me yesterday and ask whether it would be okay for them to pay a lawyer $10 and have the lawyer cloud the title. Fraud is everywhere.

Jan 31, 2013 11:29 AM #1
Rainmaker
1,570,074
David Saks
(retired) - Memphis, TN

A woman came to the office about four or so years ago, Melissa, and offered me an old van and cash if I'd pretend to be her estranged husband at closing. I politely asked her to leave and seek family counseling.

It could have been worse, but I can endure trying circumstances with an even temper.

Jan 31, 2013 02:44 PM #2
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,570,074

David Saks

May God Bless You, Always. David
*
*
*
*
Spam prevention

Additional Information