Man Admits Straw Buyer Scheme and Tax Fraud

Allison Tussey —  July 13, 2011 — 2 Comments

Deangelo Wade, 40, Plymouth, Michigan, pleaded guilty to mortgage fraud and filing a false tax return.

According to court records, beginning in 2004, Wade used straw buyers in conducting real estate transactions. These straw buyers used false information to obtain mortgages on the purchased properties. Wade would repair these properties and sell them for large gains. At the closing, the title company would issue checks to the straw buyers who would sign them over to Wade. During 2004, 2005, and 2006, Wade knowingly filed tax returns, signed under penalty of perjury, that excluded the commissions and gains from the sales of these properties. In November 2006, Wade purchased a home and secured a mortgage for $1.65 million from Indymac Bank. By inflating the value of the property, Wade received $395,689 from the loan proceeds, which he also failed to report on his 2006 tax return. The mortgage went into default. Indymac Bank was later seized by the FDIC and the property was sold at a Sheriff’s sale for $520,000. The total tax loss to the Internal Revenue Service was approximately $224,724.

The maximum penalty for mortgage fraud is 30 years imprisonment and a $1 million fine. The maximum penalty for filing a false tax return is three years imprisonment and a $250,000 fine.

Wade is schedule to be sentenced on August 16, 2011 before the United States District Court Judge Robert H. Cleland.

United States Attorney Barbara L. McQuade announced the guilty plea.

McQuade was joined in the announcement by Andrew Arena, Special Agent in Charge, Federal Bureau of Investigation and Erick Martinez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation.

The case was investigated by special agents of the Federal Bureau of Investigation and IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney F. William Soisson.

“Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable,” said Erick Martinez, Special Agent in Charge IRS-Criminal Investigation. “IRS stands ready to partner with all law enforcement agencies to pursue individuals who commit these types of crimes that can negatively impact our community and economy.”

 

 

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2 responses to Man Admits Straw Buyer Scheme and Tax Fraud

  1. I HOPE THEY BURN HIS BUTT.HATS OFF TO THE PEOPLE WHO DID THEIR DUTY.I WLL BE TALKING TO THE IRS SOON ABOUT THE LOSS TO CITI CORP OF I.5 MILLION AT PINE VILLAGE NORTH TOWNHOMES IN HARRIS COUNTY TEXAS.AND OTHER MATTERS THESE PEOPLE TRY TO HIDE. G.UBER USN RET (BY THE WAY I DO CARRY A PISTOL)

  2. WHAT ABOUT THE BIG BANKS?? INDYMAC?? ONEWEST BANK?? JAIL THEM TOO!!! ALL of we homeowners should be gaining a percentage of what the banksters fraudulently did with our notes, there are MILLIONS that need to be collected..funny thing, the lady at the irs said it wasn’t for them to prosecute? REALLY>>> who then???

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