Former California Resident Admits Fraud Scheme

admin —  March 23, 2010 — Leave a comment

Nefrititi Luv a/k/a Phlecia Pierce a/k/a Phlecia Rice (Luv), 49, an Arizona resident, pleaded guilty in federal court in San Francisco, California, to mail fraud and failure to file a tax return.  

In pleading guilty, Luv, admitted that between November 2005 and January 2006, she submitted false loan applications and other documents in connection with the fraudulent purchase of five properties in the Phoenix, Arizona, area. Among other misrepresentations, she intentionally misstated her income, assets, and intent to use each of the properties as her primary residence. Those misrepresentations were material and Luv acted with the intent of fraudulently inducing lenders to fund the loans on the properties. As part of her scheme to defraud the lenders, she used the mails for the delivery of loan applications and deeds of trust. In addition, during the period of 2001-2004, Luv was a Board member of a company called Chicago Development and Planning (Chicago D&P). During the calendar year 2003, the defendant received income from Chicago D&P and willfully failed to file a tax return disclosing that income, even through she knew she was required by law to do so.

Luv was charged in an indictment filed under seal on November 17, 2009. She was charged with two counts of mail fraud in violation of Title 18 U.S.C. § 1341 and two counts of failure to file a tax return in violation of Title 26 U.S.C. § 7203. Under the plea she pled guilty to one count of each. Luv was arrested on December 22, 2009, in Arizona. The defendant was released on $50,000 unsecured bond.

Luv is scheduled to be sentenced on July 8, 2010 at 2:30 p.m. before U.S. District Court Judge Jeffrey S. White in San Francisco, California. The maximum statutory penalty for each count of mail fraud in violation of Title 18 U.S.C. § 1341 is 20 years in prison and a fine of $250,000. The maximum statutory penalty for failure to file tax return in violation of Title 26 U.S.C. § 7203 is one year in prison and a fine of $25,000.

Special Agent in Charge, IRS Criminal Investigation, Scott O’Briant and Special Agent in Charge, Federal Bureau of Investigation, Stephanie Douglas made the announcement.

Tracie L. Brown and Jeffrey R. Finigan are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of a lengthy investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation.

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