COLUMBUS MAN CHARGED WITH FRAUD
WEDNESDAY, FEBRUARY 06, 2013
Public Affairs Officer
COLUMBUS – A federal grand jury here has returned an eleven-count indictment charging Terrance J. King, 46, of Columbus in a scheme to defraud homeowners and businesses, the Columbus Metropolitan Housing Authority (CMHA), the U.S. Department of Housing and Urban Development (HUD), and the Internal Revenue Service (IRS).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General announced the indictment today.
The indictment alleges that King started a roofing repair business, Home Improvement Terrance King, LLC, in 2008 and operated in Columbus, Dayton and Springfield. King allegedly devised a scheme to defraud insurance companies and his clients by obtaining money from insurance companies and his clients through false and fraudulent pretenses, representations, and promises. The indictment alleges that King told customers he was providing warrantied roofing materials, when in fact he provided discounted, second-hand shingles and failed to complete promised work for clients.
The indictment also charges King with filing fraudulent documents with CMHA in order to receive subsidized housing assistance. King allegedly represented that he had little or no income or assets in order to qualify for subsidized housing when in reality he had earned substantial income and purchased multiple assets in 2008.
King allegedly committed money laundering by withdrawing U.S. currency received from the scheme from his bank accounts, used the currency to purchase five cashier’s checks totaling approximately $153,627.34 and buying several vehicles and a home. King is accused of willfully filing false federal income tax returns with the IRS for the 2008-2010 income tax years that falsely reported the total income he earned in those income tax years.
The indictment also seeks forfeiture of approximately $153,627.34 in U.S. currency, of which $112,968.34 was directly traceable to the purchase of a property located at 3088 Legion Lane, Columbus, Ohio.
The indictment charges King with three counts of mail fraud, each of which is punishable by up to 20 years in prison; four counts of money laundering punishable by up to 10 years in prison; one count of filing a false claims which is punishable by up to five years in prison; and three counts of willfully filing false federal income tax returns with the IRS which is punishable by up to three years in prison.
“Law abiding citizens expect the government to hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal tax dollars and government funds," said Darryl Williams, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
Stewart commended the investigation conducted by the IRS and HUD Office of Inspector General, and Assistant U.S. Attorneys Laura Fulton and Jessica Knight, who are prosecuting the case. King will be summoned to appear in federal court.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.