Auto Tag Dealer/Tax Preparer Sentenced For Fraud
PHILADELPHIA - Norma Nay, 36, of Philadelphia, was sentenced on Friday to 33 months in prison, with credit for time served, for running tax and insurance fraud schemes that bilked the state and federal governments out of more than a million dollars. Nay pleaded guilty March 8, 2010 to charges of conspiracy to defraud the government with respect to claims, filing a false claim, conspiracy to commit mail fraud, and mail fraud. U.S. District Court Judge Michael M. Baylson also ordered Nay to pay restitution in the amount of $141,963.82 and granted the government’s request seeking the surrender of Nay’s Public Notary commission and ordering that she never seek reinstatement, nor seek, in any manner, to be licensed by the Commonwealth of Pennsylvania to issue vehicle license plates, titles and registrations.
Nay owned and operated Salinas Multi-Services and Nay’s Auto Tags. As a tax preparer and notary public, Nay filed 177 false federal tax returns between March 2007 and March 2009, attempting to defraud the IRS of $815,421. Nay would use identifying information for residents of Puerto Rico to file the false returns using her home and business addresses for the refund checks.
Through her license from the Pennsylvania Department of Transportation to operate Nay’s Auto Tags, Nay ran an insurance fraud scheme, creating counterfeit photo identification cards and counterfeit insurance cards for approximately 571 vehicles. When Pennsylvania State Police and other law enforcement agencies discovered evidence of a suspected fraud, PennDot suspended the defendant’s license to issue Pennsylvania titles and tags, eventually terminating her license on January 25, 2008. Those who had obtained the fraudulently issued license plates from the defendant and others working with her then operated the vehicles with fraudulently obtained registration and no insurance, paying no premiums for insurance that they were required to carry. They caused losses to insurance companies which provided insurance for vehicles and their occupants that were involved in accidents with the uninsured motorists, and also caused losses to motorists who were involved in accidents. The fraud loss caused or attempted to be caused by the defendant and those working with her was more than $1,000,000 but less than $2,500,000, and they caused at least 571 Pennsylvania license plates to be fraudulently issued, one of which is specifically charged in Count Four of the superseding information.
After her suspension, the defendant was not permitted to participate in licensing titles and tags in Pennsylvania. However, on April 7, 2009, search warrants executed on the defendant’s home and place of business, found documentation indicating that the defendant was still very active in the titling and registration of vehicles.
The case was investigated by the Internal Revenue Service Criminal Investigation Division and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Ashley Lunkenheimer.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525