Former Treasure Valley Couple Indicted on Multiple Counts of Wire Fraud and Bankruptcy Fraud
BOISE – Husband and wife Aaron Michael Hymas, 37, and Tiffany Kim Hymas, 36, of Bountiful, Utah, were indicted by a federal grand jury in Boise today on multiple counts of wire fraud, false statements to financial institutions, and bankruptcy fraud, U.S. Attorney Wendy J. Olson announced. The two defendants are scheduled to appear in United States District Court on March 7, 2012, before U.S. Magistrate Judge Ronald E. Bush.
Aaron Hymas was the former chief executive officer of Crestwood Construction, also doing business as Crestwood, Inc. The companies were engaged in residential construction in Idaho and Utah. The case is part of an investigation of mortgage fraud activity related to Crestwood, which involved multiple defendants who bought and sold real estate in order to “flip” it, or gain profits from the sales. The financial institutions and mortgage lenders incurred substantial losses on the loan transactions.
The 17 count indictment alleges that from February 2005 to March 2007, the two defendants submitted false and fraudulent loan applications on approximately 30 mortgage loans, in order for them to meet underwriting guidelines and appear to be qualified for the loans. The total value of the loans was approximately $8 million. The indictment alleges that the defendants inflated their monthly income on the loan applications and provided false and fraudulent amounts of rental income to support the funding of the residential loans. The indictment further alleges that the defendants provided false and fraudulent information to mortgage lenders regarding their employment, including the length of their employment and their position.
In addition, the indictment alleges that in April 2007, approximately one year before filing bankruptcy, the defendants initiated a scheme to defraud creditors and to avoid making their assets available to creditors in satisfaction of their debts. As stated on their bankruptcy schedules filed on June 11, 2008, the defendants reported secured debts totaled nearly $57 million and unsecured debts in excess of $11 million.
The indictment alleges that in December 2007, the defendants formed various trusts and other entities. Approximately two months prior to filing bankruptcy they allegedly transferred $325,000 into various accounts that were held in the name of these entities. It is also alleged that in April 2007, the defendants loaned $507,000 to an individual. It is alleged that the defendants' interest in the accounts receivable that arose through the loan was not disclosed on their bankruptcy schedules.
The indictment also alleges that Aaron Hymas fraudulently assisted other individuals in obtaining four residential loans, the total value of which was approximately $3 million.
The two defendants face up to 30 years in prison on each count of wire fraud affecting a financial institution and making a false statement to a financial institution, a maximum fine of $1 million, and up to five years of supervised release. Each count of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000 and up to three years of supervised release. The charges of bankruptcy fraud and fraudulent transfer of assets in contemplation of bankruptcy are each punishable, per count, by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
To date, nine people have been sentenced in related cases, including Michael J. Hymas, Shauntee K. Ferguson, Christopher R. Georgeson, Stanley J. Ferguson, Brent Bethers, Shane Merlin Hymas, Laurie Krechelle Hymas, Melody C. Redondo, and Paul Redondo.
In a separate but related case, Travis Richard Hymas and Season Hymas are set for trial on June 12, 2012, at the federal courthouse in Boise.
The cases were investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with assistance provided by the Office of the United States Trustee. The case is being prosecuted by the U.S. Attorney's Office for the District of Idaho and the State of Idaho, Office of the Attorney General.
The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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