Philadelphia Man Pleads To Fraud Conspiracy Involving Tax And Other Financial Crimes
Louis Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that Zaki M. Bey, 38, of Philadelphia pleaded guilty to one count of conspiracy to commit loan fraud and bank fraud, one count of conspiracy to defraud the Internal Revenue Service, and one count of conspiracy to commit wire fraud.
to court documents, Bey conspired with others to prepare fraudulent mortgage applications to obtain thirteen properties located in the Germantown section of Philadelphia and in New Jersey. Bey and the co-conspirators also furnished fraudulent payroll account documents, paystubs and financial statements to defraud financial institutions and lenders. In 2007 and 2008, Bey was responsible in securing more than $2 million in residential loans on properties purchased in the names of straw buyers. With the assistance of others, Bey would receive a payout for purported construction expenses ranging from $17,864.26 to $60,000 at the closing of each settlement. Bey was not completing any construction on these properties. In total, Bey obtained total settlement proceeds for construction costs of $435,074.26.
filed false tax returns for 2007, 2008, 2009 and 2010 claiming false withholding payments and false Forms 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. was successful in receiving a false tax refund from the IRS in the amount of $148,296 for tax year 2009. In 2012, after assessed a deficiency, BEY mailed checks to the Internal Revenue Service from a closed bank account in an attempt to repay the fraudulent tax refund. also assisted another individual in filing a falsely amended tax return with the IRS that included false withholding taxes and Form 1099-OID income.
Beginning in 2010 to 2013, Bey and others submitted fraudulent auto loan applications and furnished fraudulent payroll documents, paystubs and financial statements to automobile dealerships located in Philadelphia and New Jersey. Bey was able to obtain at least 7 automobiles purchased through straw buyers.
maximum penalty under federal law is 45 years of imprisonment, 5 years of supervised release, $1,500,000 fine and a $300 special assessment fee.
case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney James Pavlock.