Pennsylvania Man Sentenced To Prison For Loan and Tax Fraud

On Friday, September 8, 2017, a Philadelphia, Pennsylvania man was sentenced to 60 months in prison. 39-year-old Zaki M. Bey had previously pleaded guilty to a single count of conspiracy to commit loan and bank fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to defraud the Internal Revenue Service.

Court documents show that Bey conspired with others to prepare and submit fraudulent mortgage applications to lending institutions and banks. In 2007 and 2008, the defendant managed to secure more than $2 million in residential loans on at least 13 properties, which were located in the Germantown portion of Philadelphia and New Jersey.

The defendant and others created fraudulent loan applications using straw buyers. It was alleged that the loan applications contained false information about the straw buyers’ income, assets and intent to occupy the property. The defendant also provided fraudulent records, including payroll account documents, financial statements and pay stubs with the intention of defrauding financial institutions and lenders.

At the time, Bey’s company, Natural Home Builders, managed to receive payouts for supposed construction expenses ranging from $17,864.26 to $60,000 at the close of each settlement. While Bey had not completed any construction on the properties, he managed to obtain proceeds for construction costs of $435,074.26.

Between late 2010 and early 2011, the defendant filed fraudulent personal tax returns for the 2007, 2008, 2009, and 2010 tax years. On these tax returns, Bey provided false tax withholding payments and false Forms 1099-OID for his company. Bey tried to obtain more than $1.1 million in total tax returns. In actuality, he was only able to obtain $148,296 for the fraudulent 2009 tax return submitted. After the IRS determined that Bey owed money, he attempted to mail a check to the IRS from a bank account that had already been closed.

Between 2010 and 2013, Bey was involved in a wire fraud conspiracy in which he submitted fraudulent auto loan applications. By using straw buyers, Bey was able to acquire at least seven vehicles. Bey has been sentenced to 60 months in prison. He will also be required to serve 3 years of supervised release and pay $705,528.22 in restitution.