Real Estate Agent Who Participated in Property Tax Refund Fraud Sentenced to 37 Months in Prison

Here is another example of a recent legal case involving a fraudulent real estate scheme committed by a real estate agent. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

On May 7, 2009, Alethia Grooms, a licensed real estate agent, was sentenced to 37 months of imprisonment for her involvement in a $48 million property tax refund fraud scheme orchestrated by former District of Columbia Office of Tax and Revenue (“OTR”) manager Harriette Walters.

Ms. Grooms plead guilty on August 13, 2008, to Possession of Stolen Property, Conspiracy to Commit Money Laundering, and Conspiracy to Make False Statement in Connection with FHA Loan. She was sentenced to 37 months in prison, required to pay $650,929.19 in restitution, serve three years of supervised release, perform 300 hours of community service, and pay a $300 special assessment.

According to her plea agreement, Ms. Grooms participated in the theft and laundering of over $600,000 from the District of Columbia government through a D.C. property tax refund fraud scheme. Ms. Walters used her position at OTR to create false property tax refund vouchers that produced millions of dollars of fraudulent refund checks. From June 1989 through August 2007, Ms. Grooms and two of her friends received 17 fraudulent D.C. property tax refund checks, totaling over $460,000. Ms. Grooms also laundered an additional $145,000 in stolen D.C. funds through one of her bank accounts.

Ms. Grooms used her graphics design skills to help cover up the D.C. property tax refund fraud scheme. In June 2007, officials at SunTrust Bank became suspicious when a co-conspirator tried to deposit a $410,000 fraudulent D.C. check at that bank. The co-conspirator asserted that the money came from the co-conspirator’s participation in a tax sale auction at OTR. Ms. Grooms attempted to help the co-conspirator provide documentation by scanning a D.C. Real Property Tax Sale form with writing on it onto her computer.

In 2006, Ms. Grooms conspired with two OTR employees to commit mortgage fraud. Ms. Grooms was their real estate agent and assisted them with obtaining Federal Housing Administration (FHA) loans. In their loan applications, these individuals falsely claimed to have second jobs and inflated their bank accounts by $20,000. Using her graphics design skills, Ms. Grooms created bogus pay stubs and W-2 forms and forged bank statements.

In addition to her share of the proceeds of the fraudulent D.C. property tax refund checks, Ms. Grooms received cash, checks, and other items of value from Ms. Walters. In particular, Ms. Grooms received personal checks from Walters in the total amount of $42,300.

All eleven defendants in this conspiracy have plead guilty, and all but two have been sentenced. Ms. Walters, the ringleader of the conspiracy, is scheduled to be sentenced on June 16, 2009. She will likely receive a harsher sentence than did Ms. Groom.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Real Estate Company Owners Sentenced in $35 Million Mortgage Fraud

Here is another example of a recent legal case involving fraudulent real estate loan schemes and bank fraud, all related real estate transactions involving real estate professionals. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

On April 16, 2009, the two owners (Jonathan Helgason and Thomas Balko) of a Minnesota real estate company were sentenced in federal court for mortgage fraud in connection with a scheme involving at least 162 properties, principally in north Minneapolis, and mortgage proceeds of approximately $35 million.

Mr. Helgason was sentenced to 96 months in prison and three years of supervised release. Mr. Balko was sentenced to 84 months in prison and three years of supervised release. Restitution will be ordered at a later date.

According to their plea agreements, Mr. Helgason, a licensed real estate agent, and Mr. Balko were the owners of numerous companies, including TJ Waconia, Total Title LLC, Complete Real Estate Services, Inc. and CityWide Management, LLC and Investor’s Warehouse LLC (collectively, “the TJ Group”).

From approximately 2005 to 2007, Mr. Helgason and Mr. Balko executed a scheme to defraud and to obtain money by means of false and fraudulent pretenses. Using the TJ Group, Mr. Helgason and Mr. Balko purchased approximately 162 properties throughout the Twin Cities metropolitan area, principally in north Minneapolis. They would then resell the property within a few weeks to an “investor” who would purchase the property, sight unseen, at a price set by Mr. Helgason and Mr. Balko without negotiation, often times $20,000 to $60,000 more than the TJ Group had paid.

According to the plea agreements, people were told by Mr. Helgason and Mr. Balko that the investors were simply “lending” their credit to TJ Waconia (one of their companies). In exchange for “lending” their credit, the investors would receive a kickback payment of about $2,500 and a promise of an additional payment after two years when the TJ Group was to repurchase the property from the investor.

Through the scheme, the defendants perpetrated a fraud on the lenders who were led to believe that the “investors” were the actual owners of the properties, when, in fact, the “investors’” ownership was in name only. During the two-year period during which the investor owned the property, the TJ Group was responsible for all payments and maintenance on the property. In some instances, Mr. Helgason and Mr. Balko also provided investors with funds to pay the buyer’s portion of the property purchase price and worked with others to provide lenders with false loan applications on behalf of the investors so that they would qualify for the loan.

The two men, on behalf of the investors, obtained approximately $35 million in mortgage proceeds to purchase the properties from the TJ Group. Ultimately, the scheme collapsed, and the TJ Group did not repurchase the properties or continue making payments to the investors in order to pay their mortgages. The investors were left owning properties with mortgages that exceeded their property’s market value.

This case was the result of an investigation by Federal Mortgage Fraud Task Force, including the Federal Bureau of Investigation and the U.S. Postal Inspection Service. It was prosecuted by the United States Attorney's Office.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Convictions in Real Estate Loan Scheme Case

Here is another example of a recent legal case involving fraudulent real estate loan schemes and bank fraud, all related real estate transactions involving real estate professionals. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

On May 4, 2009, three people (Todd Gongwer, Lance Parker, and Joel Lee) plead guilty to conspiracy to commit bank fraud. Mr. Gongwer, a licensed real estate agent, also plead guilty to tax evasion. Mr. Parker also plead guilty to illegally structuring cash transactions.

According to the plea agreements and evidence presented during the plea hearings, from 2005 through 2007, the defendants and others negotiated and participated in real estate deals in which each of them purchased a luxury home for a falsely inflated purchase price from real estate builder Thomas Parenteau in exchange for an undisclosed or disguised kickback. Mr. Gongwer admitted to using nominees to purchase at least two other luxury homes for inflated prices with kickbacks.

In each transaction, the buyers misrepresented their income and assets in order to obtain approximately 90% financing of the inflated purchase price. The buyers, seller Mr. Parenteau and Mr. Parenteau’s real estate agent, Bonnie Helt, attempted to justify the inflated purchase prices by creating and signing false work change orders and addendums that created the appearance that the inflated price represented additional substantial work to be completed on the homes. However, no such agreement was actually intended by any party, and the documents were not disclosed to the lenders. The object of each transaction was to use the loan proceeds in excess of the actual purchase price to fund hundreds of thousands of dollars in kickback payments to the buyers. The loans associated with the real estate purchases of Mr. Gongwer, Mr. Parker and Mr. Lee have all gone into default.

Mr. Gongwer and Mr. Parker also admitted to conducting a similar transaction involving Mr. Parker’s purchase of 15 condominium units in three buildings located in Columbus, Ohio, from Mr. Parenteu’s associate and architect, William Tarcy. Mr. Tarcy plead guilty to conspiracy to commit bank fraud and agreed to forfeit assets related to the offense in March 2009. Mr. Tarcy’s sale of the condominiums also involved inflated purchase prices, fraudulently obtained financing by Mr. Parker, and substantial kickback payments to Mr. Parker as the buyer.

Mr. Gongwer accepted responsibility for causing a fraud loss between $2.5 million and $7 million. Additionally, Mr. Gongwer plead guilty to tax evasion for failure to report income he received. According to his plea agreement, Mr. Gongwer worked for RE/MAX Affiliates Inc. in 2004, and was paid approximately $158,333.32 in gross income. Mr. Gongwer deposited that income into nominee accounts in order to conceal his receipt of that income from the IRS. Mr. Gongwer also failed to file income tax returns for tax years 2000 through 2005. The tax loss caused by his conduct is between $200,000 and $400,000.

Mr. Parker and Mr. Lee each accepted responsibility for causing a fraud loss between $400,000 and $1 million. Mr. Parker also plead guilty to structuring transactions to avoid federal reporting requirements. During 2007, Mr. Parker engaged in cash transactions in amounts less than $10,000 for the purposes of withdrawing cash from his bank accounts in order to finance gambling vacations in Las Vegas and to avoid federal currency transaction reporting requirements.

Sentencing of all three defendants for a date after the July 2009 trial of Tom Parenteau, his accountant Dennis Sartain and his realtor Bonnie Helt, who were charged in April 2009 in a tax fraud and money laundering scheme. Mr. Gongwer faces a maximum sentence of 10 years in prison and a maximum fine of $500,000. Mr. Parker faces a maximum sentence of 10 years in prison and a maximum fine of $500,000. Mr. Lee faces a maximum sentence of five years in prison and a maximum fine of $250,000.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Fair Housing Act Lawsuit Filed Alleging Disability-Based Housing Discrimination

Here is another example of a recent Fair Housing Act lawsuit brought by the United States Department of Justice (“DOJ”). I try to post case summaries in order to provide timely updates to real estate agents and brokers about the "dos and don'ts" under the Fair Housing Act, since fair housing is such an important issue.

On May 7, 2009, the DOJ filed a lawsuit against Equity Homes Inc, PBR LLC, BBR LLC and Shane Hartung in federal court alleging that the defendants failed to provide accessible features required by the Fair Housing Act at six separate multi-family housing developments in Sioux Falls, South Dakota.

The lawsuit, which originated from a complaint filed with HUD, concerns six Sioux Falls complexes. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Among other things, the Act requires that new multifamily housing developments be designed and constructed with basic accessibility features, including accessible common and public use areas, accessible routes to and through apartments, doors wide enough for wheelchair users, kitchens and bathrooms with sufficient maneuvering space for wheelchair users, outlets and environmental controls in accessible locations, and bathrooms with reinforcements for grab bars. The lawsuit alleges that the defendants failed to include certain of these required accessibility features at each of the six complexes.

When builders and designers construct homes without regard for accessible features, they are effectively shutting the door to persons with disabilities. Designing and constructing multi-family housing without basic features of accessibility violates the law and subjects the builders and designers to liability under the Act.

The lawsuit seeks a court order requiring the defendants to modify the complexes to bring them into compliance with federal laws and prohibiting future discrimination by the defendants, as well as monetary damages to compensate victims. The lawsuit filed by the DOJ is an allegation of unlawful conduct, and the allegations must still be proven in court.

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To learn more about fair housing issues (and many other real estate topics), please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

MLS Antitrust Lawsuit Settled

Here is a summary of a settlement in an antitrust lawsuit that was brought by the United States Department of Justice (“DOJ”) against a MLS provider. I try to post lawsuit/settlement summaries in order to provide timely updates to real estate agents and broker.

On May 4, 2009, the DOJ reached a proposed settlement with Consolidated Multiple Listing Service Inc. (“CMLS”) that requires CMLS to change its rules to allow low-priced and innovative brokers to compete with traditional brokers in the Columbia, South Carolina, area. The DOJ alleged that the rules caused consumers to pay more for residential real estate brokerage services in the Columbia area.

A multiple listing service (“MLS”), like the one operated by CMLS, is a joint venture of real estate brokers that combines its members’ home listings information into an electronic database that is made available to all member real estate brokers. This database serves as a clearinghouse for the members to communicate important information among themselves, such as descriptions of the listed properties for sale and offers to compensate other members if they locate purchasers for those listings. In addition, the database allows member brokers who represent buyers to search for nearly all the listed properties in the area that match the buyer’s needs.

Because the MLS’s database is the primary source of home listings information on virtually every home listed for sale in a given area, access to the database – and therefore MLS membership – is critical for any real estate broker seeking to serve clients successfully in the MLS’s service area. Consequently, the rules adopted by the MLS governing who can be a member and how members must behave can have a significant impact on competition among real estate brokers in the area served by the MLS.

In May 2008, the DOJ’s Antitrust Division filed a civil antitrust lawsuit against CMLS in federal court, challenging policies and rules that restrained competition among brokers in Columbia in several ways. According to the lawsuit, CMLS imposed burdensome prerequisites to membership that prevented some real estate brokers, such as those who would likely compete aggressively on price, from listing homes for sale in the MLS’s database, ensuring that those brokers could not compete in the Columbia area. CMLS required applicants for membership to discuss the nature of their businesses with a committee of incumbent members and reserved the power to deny membership to brokers who they feared would compete too aggressively. CMLS also stabilized the price of brokerage services by forcing its broker members to provide a full set of brokerage services regardless of whether a client wanted the required services. The DOJ alleged that those rules prevented consumers from receiving the full benefits of competition, discouraged discounting, and threatened to lock in outmoded business models.

The proposed settlement with CMLS requires it to change those rules and prohibits it from adopting new rules that exclude real estate brokers from membership based on their business models or price structures. CMLS must allow any broker holding the appropriate license under South Carolina law to become a member and cannot continue to exclude brokers based on their business models. The settlement requires CMLS to repeal rules that denied Columbia-area home sellers the ability to hire a real estate broker to perform only the specific services the seller desired, at a lower cost than the seller would pay a traditional, full-service broker. CMLS also will repeal its requirement that its member brokers use only the single contract approved by CMLS, which blocked home sellers from alternative arrangements that allowed them to avoid paying any commission to their broker if the sellers found buyers for their homes.

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www.123ConEd.com is the leading provider of online real estate continuing education in Michigan. All of our courses are fully approved and properly certified by the State of Michigan.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Fair Housing Lawsuit Settled for $200,000

Here is another example of a recent settlement of a Fair Housing Act lawsuit brought by the United States Department of Justice (“DOJ”). I try to post case summaries in order to provide timely updates to real estate agents and brokers about the "dos and don'ts" under the Fair Housing Act, since fair housing is such an important issue

On April 30, 2009, the DOJ settled a Fair Housing Act lawsuit that was brought against the owners, a manager and a former manager of Cottage Manor Apartments (located in Lakewood, New Jersey) because they discriminated against tenants on the basis of religion, national origin and race.

According to the lawsuit, the defendants transferred or attempted to transfer Hispanic and African American tenants from their apartments located in its most desirable building to make room for Orthodox Jews whom they courted as new tenants from 2002 to 2004. The defendants then assigned the non-Jewish tenants to less desirable apartments in the rear of the property, which had fewer amenities and were less well maintained than the most desirable building at the front of the property. The defendants charged the incoming Jewish tenants less rent than they did to non-Jewish tenants for apartments of similar size. Segregating tenants and providing discounted rents based upon religion, national origin or race is degrading and discriminatory.

The lawsuit originated from charges filed by HUD on behalf of current and former tenants of Cottage Manor Apartments. The lawsuit alleged that the apartment owners of Cottage Manor Apartments, Triple H. Realty LLC, its principal manager Harry Kantor and former managing agent Vincent Ortiz, violated the Fair Housing Act when they discriminated against Hispanic and African American tenants.

HUD’s investigation found that non-Jewish, African-American and Hispanic tenants received little to no apartment maintenance as compared to the maintenance provided to Jewish tenants. For example, Cottage Manor Apartments management refused to properly exterminate a non-Jewish family’s apartment, as well as failed to perform adequate maintenance repairs in the family’s bedroom and bathroom.

HUD’s on-site investigation confirmed that the maintenance of the one building occupied by non-Jewish tenants was substantially different. The building housing many of the Jewish families had a well-manicured lawn in the front courtyard that was enclosed by a white picket fence. Conversely, the buildings with the majority of African-American and Hispanic tenants were not well maintained, had little or no lawn in the courtyards, and the courtyards were not enclosed.

Cottage Manor management also instituted different lawn policies for tenants that were not Jewish. African-American and Hispanic tenants were told that they could not leave any toys or personal items on the lawns, but Jewish tenants were allowed to leave personal items on the lawns.

Under the terms of the settlement, the defendants were required to pay a total of $170,000 to identified victims of discrimination and an additional $30,000 to the government as a civil penalty.

Fair housing laws require equal access to housing, including equal access for persons with disabilities. The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.

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To learn more about fair housing issues (and many other real estate topics), please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Criminal Charges in $70 Million “Dream Home” Mortgage Fraud Scheme

Here is another example of a recent legal case involving mortgage fraud. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

A federal grand jury has indicted four defendants for their participation in a massive mortgage fraud scheme that promised to pay off homeowners' mortgages on their "Dream Homes," but left them to fend for themselves. The indictment was unsealed on April 27, 2009.

According to the indictment, from 2005 to 2007, the defendants allegedly used corporate names such as "Metropolitan Grapevine LLC," "Metro Dream Homes," "POS Dream Homes," and "POS DH LLC" (collectively, “MDH”) to target homeowners and new home purchasers to participate in a purported mortgage payment program called the "Dream Homes Program." To participate, an investor had to provide a minimum of $50,000 for each home enrolled in the program, in addition to an "administrative fee" of up to $5,000. In exchange, the program promised to make the homeowner’s future monthly mortgage payments, and pay off the homeowner’s mortgage within five to seven years. Thereafter, the homeowner and MDH would own an equal interest in the home.

The indictment identifies the following people and alleges that Andrew Hamilton Williams, Jr. was the founder and owner of MDH; Michael Anthony Hickson was the chief financial officer; Isaac Jerome Smith was the president; and Alvita Karen Gunn was the vice president of operations. The information alleges that Carole Nelson was the chief financial officer of POS Dream Homes.

The indictment further alleges that Dream Homes Program representatives explained to investors that the homeowners’ initial payments would be used to fund investments in automated teller machines (ATMs), flat-screen televisions that would show paid business advertisements, and "Touch-N-Buy" electronic kiosks that sold telephone calling cards and other items. To give the Dream Homes Program a veneer of legitimacy and financial success, the defendants marketed the program through live presentations at luxury hotels in Maryland, Washington, D.C., and Beverly Hills, California, among other locations. The defendants allegedly told some of the investors that they should not worry about the price of the homes or monthly mortgage payments because MDH would make mortgage payments on their behalf.

The indictment alleges that the defendants failed to advise investors that:

• the ATMs, flat-screen televisions and kiosks never generated any meaningful revenue;
• the defendants used the funds from later investors to pay the mortgages of earlier investors (Ponzi scheme); and
• MDH had not filed any federal income tax returns throughout its existence.

The defendants also allegedly failed to advise investors that their investments were being used for the personal enrichment of select MDH employees, including the defendants, to:

• pay salaries of up to $200,000 a year as well as their mortgages;
• employ a staff of 10 chauffeurs and maintain a fleet of luxury cars; and
• travel to and attend the 2007 NBA All-Star game and the 2007 NFL Super Bowl, staying in luxury accommodations in both instances.

Nor were investors told that investor funds were allegedly used to:

• pay off investors in a prior failed ATM investment venture that Mr. Williams had founded called Bankcard Group;
• make multiple donations of up to $50,000 each to charitable organizations to allegedly give MDH the appearance of being financially successful; and
• fund investments in third-party businesses that had not been disclosed to investors.

On August 15, 2007, the Maryland Securities Commissioner issued a cease-and-desist order to Mr. Williams, MDH and other related companies directing them to immediately cease the offering and sale of unregistered securities in connection with their promotion of the Dream Homes Program. Despite that cease-and-desist order, the defendants continued to hold additional meetings in which they allegedly made additional misrepresentations about the financial success of MDH’s operations.

And, because these guys were not content to settle just for mortgage and bank fraud alone, they decided to also add perjury to the list of charges. On September 4, 2007, the defendants filed a legal challenge in federal court in Maryland to the cease-and-desist order. The indictment alleges that at a hearing on September 12, 2007, Mr. Hickson testified that the financial success of the Dream Homes Program did not rely upon new investor funds, when in fact Mr. Hickson knew that the sole source of meaningful revenue for MDH was new investor funds (hence, the perjury).

As a result of the scheme, more than 1,000 investors in the Dream Homes Program invested approximately $70 million. When the defendants stopped making the mortgage payments, the homeowners were left to attempt to make the mortgage payments MDH had promised to make in full.

An indictment is merely a formal charge by the grand jury. Each defendant is presumed innocent unless and until proven guilty in court. The four indicted defendants face a maximum sentence of 20 years in prison for the fraud conspiracy; 20 years in prison on each of the 15 counts of wire fraud (for a possibility of 300 years); and 20 years in prison for conspiracy to commit money laundering. Mr. Hickson also faces a maximum sentence of five years in prison for making false statements. Mr. Smith also faces a maximum sentence of 30 years in prison for bank fraud arising out of his alleged misrepresentation of his income in order to obtain a bank loan to purchase a new Bentley automobile. The indictment seeks forfeiture of the fraud proceeds, including $70 million.

This prosecution is being brought jointly by the Maryland and Washington, D.C. Mortgage Fraud Task Forces, which are comprised of federal, state and local law enforcement agencies in Maryland, Washington, D.C., and Northern Virginia. The Task Forces were formed to promote the early detection, identification, prevention and prosecution of various kinds of mortgage fraud schemes.

I will try to keep following this interesting case and post an update when the case is ultimately resolved, hopefully with all of the defendants getting long prison sentences.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Criminal Conviction for Interfering with Housing Rights of African-American Family

Here is another example of a recent legal case, this time involving a criminal conviction of someone for interfering with the housing rights of a family. Although most of my legal updates involve missteps by real estate professionals, I decided to post this because it involved a charge of interfering with housing rights.

On April 27, 2009, Justin Hanson, a twenty-one year old resident of Mason City, Iowa, plead guilty to interfering with housing rights of an African-American family (civil right violation).

In the plea agreement, Mr. Hanson admitted that on May 9, 2008, he placed a racially offensive sign in the yard of a neighboring African-American family and the next day he fired a B.B. gun into the victims' home, breaking a bedroom window. By placing the sign and firing upon his victims, Mr. Hanson was attempting to injure, intimidate or interfere with the family’s enjoyment of their home. Mr. Hanson admitted he placed the sign in the yard and fired upon the house because of his neighbors' race and because they were living in his "white" neighborhood, town and country.

This genius is scheduled to be sentenced in federal court on July 16, 2009. He was convicted of one count of interfering with housing rights and faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.

The case was investigated by the FBI and local police. It was prosecuted by the United States Attorney’s Office.

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To learn more about a variety of real estate topics, please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Realtor, Home Builder and Accountant Indicted in Tax Fraud and Money Laundering Scheme

Here is another example of a recent case involving a real estate professional (and two others) who thought that she could make a few quick bucks by falsely inflating the purchase price of homes in an effort to defraud lending and financial institution out of millions of dollars. As with all of these types of schemes, the law eventually caught up with her, and she now faces criminal charges that could result in 105 years in prison and a fine of nearly $3 million.

On April 21, 2009, a federal grand jury returned an eighteen-count superseding indictment charging Thomas E. Parenteau, Dennis G. Sartain, and Bonnie Helt-Adams, all from Ohio, with tax fraud, bank and wire fraud, money laundering and obstruction of justice.

Mr. Parenteau and Mr. Sartain were originally indicted in September 2008, for obstruction of justice, conspiracy and witness tampering and have been detained since their arrests at that time. The superseding indictment includes additional allegations and adds Ms. Helt-Adams as a co-defendant.

According to the superseding indictment, Mr. Parenteau operated and controlled a number of Columbus-area businesses that were owned in the name of his wife, including Advanced Precast Building Systems LLC, Parenteau Builders LLC, Your Home Source LLC, and MKP Investments LLC. Mr. Sartain had been Mr. Parenteau’s primary accountant since 2000. Ms. Helt-Adams is a licensed real estate agent who listed and sold many of Mr. Parenteau’s luxury homes and formally joined Your Home Source, LLC in 2005.

The superseding indictment alleges that Mr. Parenteau and Mr. Sartain prepared and filed four false income tax returns for Mr. Parenteau’s mistress that generated over $700,000 in fraudulent refunds, which went to Mr. Parenteau. The superseding indictment also charges Mr. Parenteau and Mr. Sartain with conspiracy to commit money laundering related to $18 million in fraudulently obtained loan proceeds secured against Mr. Parenteau’s home at 4500 Dublin Road (known as Loretta Estate), which was a 27,000 square foot residence that sits on 4.8 acres on the Scioto River in Dublin, Ohio.

In addition, the superseding indictment alleges that Mr. Parenteau and Ms. Helt-Adams engaged in a scheme to defraud lending and financial institutions out of millions of dollars by falsely inflating the purchase price of the homes Mr. Parenteau built and sold in exchange for paying large undisclosed or disguised kickbacks to the buyers after their purchases.

Finally, the superseding indictment alleges that, after learning of the IRS investigation into the tax, bank fraud and money laundering schemes, Mr. Parenteau, Ms. Helt-Adams and Mr. Sartain engaged in a scheme to obstruct justice by concealing computers, creating false documents, destroying or altering evidence, tampering with a witness, lying to federal and local investigators and otherwise obstructing justice.

An indictment is merely a formal charge by the grand jury. Each defendant is presumed innocent unless and until proven guilty in court. If convicted, Mr. Parenteau faces a maximum sentence of 150 years in prison and a fine of over $4 million; Mr. Sartain faces a maximum sentence of 60 years in prison and a fine of over $1.5 million; Ms. Helt-Adams faces a maximum sentence of 105 years in prison and a fine of nearly $3 million.

I will try to follow this matter and provide an update when this case is wrapped up.

Hi! I'm helping raise money to help fight cancer. I'm taking part in the 25th Annual American Cancer Society Relay For Life on June 13 and 14, 2009. Almost everyone, including myself, has a friend or family member who has been affected by cancer. I'm hoping to get as many donations as possible for this event (no amount is too small), and I'm hoping that some of my fellow bloggers might be willing to help out.

Would you be willing to donate to my fundraising efforts? Please check out my personal page to find out more info or to make a secure tax-deductible contribution. Donations are made directly on the American Cancer Society's website through the link to my personal page (click in the "Donate" circle).

About Relay for Life

One in three people will be diagnosed with cancer during their lifetime. The American Cancer Society Relay For Life is an event that brings together more than 3.5 million people across the country each year to celebrate the lives of those who have battled cancer, remember loved ones lost, and fight back against a disease that takes too much.

Relay For Life is a wonderful community event that raises money to combat this disease and to spread awareness about how we can protect ourselves from cancer. It is a fun-filled event that brings together people of all ages to camp-out and take turns walking around a track for 24 hours to signify that cancer never sleeps. It's a time of celebrating those who have battled the disease, remembering those who have died and a chance to fight back against a disease that takes too much from too many.

About the American Cancer Society

There's never been a more exciting time to get involved with the American Cancer Society. Today, the number of people dying from cancer is dropping, despite our growing population. Fewer people are being diagnosed with cancer and fewer people are dying from the disease. We know more about the causes of cancer and its treatment and cures than ever before. And we are helping to save lives every day.

The work of the American Cancer Society over many decades has helped us make amazing strides against this disease. Every dollar you provide to the American Cancer Society goes toward eliminating cancer as a major health concern. Your donation is essential to supporting the American Cancer Society's mission, which fights cancer on four fronts: research, education, advocacy, and service.

The Relay for Life is more that just a fundraiser. It's a chance for caring people in a community to come together to support each other. And support is crucial for those who have been touched by cancer. At the American Cancer Society, the funds raised through Relay for Life not only go to research, advocacy, and education, but also for vital programs and services that give people hope and answers.

Please Help Me Raise Money

I've set the ambitious goal of trying to raise a total of $3,000 for this event. I'm hoping that my fellow bloggers will help me reach that goal through a tax deductible donation. No donation is too small. Every $5, $10, $20, etc. will help the American Cancer Society. Please visit my personal page and make a secure online donation through the American Cancer Society's website (click in the "Donate" circle).

Thank you for your support!!