News and Press Releases

Jersey city man sentenced to prison in bank fraud scheme



FOR IMMEDIATE RELEASE
April 19, 2012


 

NEWARK, N.J. – A Jersey City, N.J, man who used his New York auto repair business to perpetuate bank fraud was sentenced today to 41 months in prison for his role in the scheme, which caused four banks to lose approximately $1 million, U.S. Attorney Paul J. Fishman announced.

Syed Rehman, 45, previously pleaded guilty before U.S. District Judge José L. Linares to an Information charging him with one count of bank fraud, admitting he was part of a scheme involving the use of unlawfully obtained Social Security numbers to open bank accounts and obtain credit cards and mortgage loans. Judge Linares also imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

Rehman admitted he paid an employee of the Social Security Administration in order to unlawfully obtain Social Security numbers. Rehman was the owner of ZHN Auto Repair in New York, and he allowed other participants in the scheme to use his business to establish false employment histories and claim high salaries in order to induce the banks to issue credit cards and mortgages. Rehman admitted that he and the other participants in the scheme never intended to repay the banks. The scheme caused J.P. Morgan Chase Bank, Bank of America and Citigroup to lose a total of approximately $1 million.

In addition to the prison term, Judge Linares sentenced Rehman to serve five years of supervised release. Rehman will also be required to pay restitution in an amount to be determined.

U.S. Attorney Fishman thanked inspectors from the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge Philip R. Bartlett; and agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Edward J. Ryan, for the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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Defense counsel: A. Paul Condon Esq., Jersey City, N.J.

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