Corrales Man Pleads Guilty to Federal Wire Fraud Offense
ALBUQUERQUE – This morning in Albuquerque federal court, Robert Frank Hayes, also knowm as "Frank William Bauman," pleaded guilty to a federal wire fraud offense under a plea agreement with the United States Attorney's Office. Specifically, Hayes pleaded guilty to Count 2 of an indictment charging him with two counts of wire fraud. At sentencing, which has yet to be scheduled, Hayes faces up to twenty-years imprisonment, a maximum $250,000.00 fine, and up to five-years of supervised release. Under the terms of the plea agreement, Hayes also is required to pay $192,059.62 in restitution. Hayes remains on release under pretrial supervision pending his sentencing hearing.
United States Attorney Kenneth J. Gonzales said that the charges in the indictment are based on materially false statements Hayes made in residential loan applications. The two-count indictment, which was filed on March 24, 2010, charged Hayes with devising a scheme for obtaining money from mortgage companies by making false and fraudulent representations. Count 1 alleged that, between November 29, 2005 and December 31, 2005, Hayes made false representations to Pulte Mortgage, LLC, in a loan application and that the misrepresentations were relied upon to facilitate the wire transfer $12,905.65. Among other misrepresentations, Hayes falsely represented that there were no outstanding judgments against him, that he was not obligated to pay alimony or child support, and that he had been employed by a specific company for more than 10-years. Count 2 alleged that, between March 1, 2006 and April 30, 2006, Hayes made false representations to the First Horizon Home Loan Corporation in a loan application and that the misrepresentations were relied upon to facilitate the wire transfer of $100,299.06. The misrepresentations alleged in Count 2 are similar to those alleged in Count 1.
In his plea agreement, Hayes admitted making materially false statements in residential loan applications as alleged in the indictment. Specifically, although Hayes represented that there were no judgments against him in the applications, county clerk records reflected that there were more than $250,000.00 in civil judgments against Hayes. Hayes also admitted that, despite his claim that he had been employed by Lightstorm Construction, Inc. for ten years in the 2005 application and eleven years in the 2006 application, that company was not incorporated until October 2004. Hayes further admitted that he falsely claimed that he was not obligated to pay either spouse or child support when in fact he was required to pay child and spouse support in the amount of $9,000.00 a year. In pleading guilty, Hayes acknowledged that he knowingly made these false statements as part of a scheme for obtaining money, and with the knowledge that the interstate wire communication facilities would be used to facilitate his unlawful scheme.
The case was investigated by the U.S. Department of Homeland Security and the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney Paul H. Spiers.