United States Attorney for the Eastern District of Pennsylvania Announces Participation in National Money Mule Initiative; Obtains Three Civil Injunctions Against Alleged Money Mules Involved in Lottery Scams
PHILADELPHIA - A multi-count superseding indictment, unsealed Monday, charges Zaki M. Bey, 38, of Philadelphia, PA, with conspiracy to file false claims with the IRS, conspiracy to commit loan fraud and bank fraud, conspiracy to commit wire fraud and related charges, announced United States Attorney Zane David Memeger. According to the indictment, Bey conspired to file false federal income tax returns for tax years 2007, 2008, 2009 and 2010. Bey allegedly filed these tax returns claiming false withholding payments and Form 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. Bey also allegedly assisted another individual in filing a false amended tax return with the IRS that included false withholding and Form 1099-OID income.
It is further alleged that beginning in 2007, Bey conspired with other individuals to submit false information in mortgage applications for at least 13 properties in the Germantown section of Philadelphia and in New Jersey. Bey was responsible in securing more than $2 million in residential mortgage loans on these properties, which were allegedly purchased by straw purchasers acting on Bey’s behalf. With the assistance of a co-conspirator who was a mortgage broker, Bey submitted loan applications to lenders containing false information about the straw buyers’ income, assets, extent of pre-existing liabilities and the intent to occupy the properties as primary residences. Bey and the co-conspirators also created and submitted altered payroll, wage and tax documents to lenders to support the fraudulent loan applications.
It is further alleged that beginning in 2010, Bey conspired with others to create false employment and payroll documents and make fraudulent loan applications made to lenders through auto dealerships in Philadelphia and New Jersey. Bey was able to obtain at least six automobiles purchased through straw buyers by submitting false loan applications based on income used from the fraudulent payroll documents.
If convicted, Bey faces a statutory maximum sentence of 253 years in prison, a possible fine, a period of supervised release, and a $1,500 special assessment.
This case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney James Pavlock.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.