Mortgage Fraud Speaker Chuck Gallagher Comments: Mortgage Fraud in California - Iftikhar Ahmad Pleads Guilty!

Like many of my readers, I lived through the Savings and Loan crisis several decades ago and it wasn’t pretty. My fear - with the magnitude of potential mortgage fraud rising to the surface, what we might see in the future could dwarf the problems that were created by the S&L crisis.

And another man pleads guilty! IFTIKHAR AHMAD, 36, of Stockton, Calif., pleaded guilty to two counts of mail fraud and one count of engaging in monetary transactions involving criminally derived property. The charges relate to a widespread mortgage fraud scheme centered in the Stockton, California area.

After an extensive investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service–Criminal Investigation (IRS-CI), Ahmad saw the light and knew that a guilty plea would be best for him considering the circumstances. investigation remains ongoing.

But how did this massive fraud get uncovered?

Rebecca Wood knew something was wrong when she got a call from Washington Mutual about a late house payment. Her response helped the FBI uncover millions of dollars in mortgage fraud.

According to property records, someone using Wood’s identity bought two houses in Stockton in 2003. When the loan for one of the homes went bad, Washington Mutual called Wood.

According to the US Attorney’s office, AHMAD admitted that from July 2003 through October 2005, he participated in a scheme to defraud Long Beach Mortgage, a wholesale lender, in connection with the sale (and in one instance resale) of 10 residential real properties primarily located in the Stockton, area. Between July 2003 and January 2005, AHMAD, through a company called I & R Investment Properties, LLC, fraudulently sold (and in one instance resold) 10 residential real properties, obtaining in excess of $1.5 million in loan proceeds. In each of the transactions, the purchaser financed the property with money borrowed from Long Beach Mortgage.

The scheme involved the use of some straw purchasers— purchasers who lent the name and credit to real estate transactions in which they in fact had no interest. The scheme also involved false statements on loan documents, including those that related to income and occupation, and undisclosed payments by AHMAD of the down payment on behalf of the purchasers.

The use of false documents is common among mortgage fraud convictions. However, based on my experience speaking about mortgage fraud to realty associations and mortgage groups, it is clear that many people somehow feel that simple “financial positioning” is acceptable. More times than not, on close examination - “financial positioning” can be construed as fraud.

In this case, AHMAD is the fourth defendant to plead guilty as a result of the investigation in the case. On December 17, 2007, JOHN NGO, 27, of San Ramon, California, a former Senior Loan Coordinator for Long Beach Mortgage, pleaded guilty to perjury for falsely stating in testimony before the grand jury that he had not received money from a mortgage broker who referred borrowers to Long Beach Mortgage, including borrowers involved in transactions with AHMAD, when in fact he had received more than $100,000 from the mortgage broker.

On March 31, 2008, MANPREET SINGH, 24, of Stockton, entered a guilty plea to a single count of mail fraud. She admitted as part of her plea that she had participated as a straw purchaser and borrower in connection with two properties that she purchased from I & R Investments in late 2004 and early 2005. She further admitted that AHMAD paid her in excess of $22,300 for her participation in the scheme. Clearly here a case of fraud for money!

On April 17, 2008, JOSE SERRANO, 44, of Stockton pleaded guilty to a single count of mail fraud. As part of his plea, SERRANO admitted that AHMAD had paid SERRANO to recruit straw purchasers, and that AHMAD and SERRANO caused several purchasers to be paid for participating in the scheme.

“This prosecution begins to bring into focus the ways that fraud occurred in the subprime lending market in the Stockton area in the 2003 to 2005 time frame,” said United States Attorney Scott. “False representations were made in loan documents; down payments were secretly made “This prosecution begins to bring into focus the ways that fraud occurred in the subprime lending market in the Stockton area in the 2003 to 2005 time frame,” said United States Attorney Scott.

“False representations were made in loan documents; down payments were secretly made by the seller on behalf of borrowers; buyers and recruiters were paid to participate in the scheme; and a loan coordinator working for a wholesale subprime lender was paid by a mortgage broker handling the transactions. The investigation continues.”

Every choice has a consequence! Considering the wide spread incidences of mortgage fraud, I suspect that this case is just the tip of the iceberg when it comes to what has been done and how many are yet to be discovered. As a mortgage fraud speaker, I am finding more and more that people are just now beginning to understand how wide spread mortgage fraud is and how easy it can be to be caught up in a mortgage fraud investigation.

Prison Chaplain Sentenced to Prison - Vincent Inametti Sentenced to 48 Months for Sexual Abuse!

It’s not uncommon to hear of sexual abuse in prison. What is uncommon is to find that the abuse was at the hand of a Catholic priest - a prison chaplain no less!

Vincent Inametti, a Roman Catholic priest, who worked as a chaplain at Federal Medical Center (FMC) Carswell in Fort Worth, was sentenced to 48 months in prison. Inametti, 48, who pled guilty in November to two counts of sexual abuse of a ward, was also ordered to pay a $3000 fine.

Inametti is a naturalized U.S. citizen who was ordained in his native country, Nigeria. He was immediately remanded into custody to begin serving his sentence.

The Department of Justice, Office of Inspector General, (DOJ-OIG) received a complaint in March 2007 that Inametti was sexually involved with a particular inmate, “D.D.” Subsequent investigation by DOJ-OIG agents revealed that Inametti was also sexually involved with another inmate, “E.R.” Both inmates were serving federal prison sentences for drug distribution conspiracy convictions.

“D.D.” became acquainted with Inametti in August 2004 when she began attending Catholic services, joining the choir and participating in Bible study classes at FMC Carswell. “E.R.” became acquainted with Inametti a few months later, in November 2004, as a result of her assignment as a clerk for the Religious Services Department at FMC Carswell.

Inametti admitted that in February 2006, he directed “D.D.” to the chapel library, where he engaged in a sexual act with her. He further admitted that in June or July 2006, he summoned “E.R.” to a classroom in the chapel where he engaged in a sexual act with her.

According to an article in the Dallas Morning News,

His Fort Worth attorney, Michael Heiskell, said the sexual liaisons between Mr. Inametti and the two women were consensual, and he expressed hope for mercy from the court.

“Unfortunately, it was the wrong place and the wrong time,” Mr. Heiskell said. “We hope the court will judge him on the entire good work in his life as opposed to a lapse in judgment.”

But Tahira Khan Merritt, a Dallas attorney who represented one of the plaintiffs in the case, disputed the contention that the relationships were consensual. Mr. Inametti once threatened to kill her client if she told anyone about the abuse, she said, and the other plaintiff has filed a complaint with the federal prison system over the abuse.

“He was in a supervisory role over them,” Ms. Merritt said. “That implies they cannot consent to sexual acts when they’re wards of the state.”

Mr. Inametti, who was ordained in 1986 in his native Nigeria, served as a parish priest at Our Mother of Mercy Church in Fort Worth from 1991 to 1996, said Pat Svacina, a spokesman for the Diocese of Fort Worth.

After a sabbatical, Mr. Inametti returned to the diocese in 1999 and served in mission churches in the Ranger, Texas, area for about a year before he went to work for the prison system.

Every choice has a consequence. In this case Inametti is facing the consequences of his actions. The sad part is, like most crimes, his choices and the consequences that follow overshadow the good that he might have done as a priest up to that time.

Perhaps his time in prison will give him the chance to do some good in ways that he could not have done as an outsider - even as a chaplain.

Business Ethics Speaker - Chuck Gallagher - signing off…

Mortgage Fraud Alive and Well in Ohio! Steven C. Gittinger Pleads Guilty to Mortgage Fraud Scheme Role

Either there is something in the water in Ohio when it comes to Mortgage Fraud - or - the US Attorney and others involved in law enforcement are serious about this wave of white collar crime. Either way, it seems that Ohio is talking a leading role in rooting out those involved in Mortgage Fraud.

Another Mortgage Fraud casualty is Steven C. Gittinger, who at age 50, pleaded guilty in United States District Court to one count of conspiracy to commit bank fraud and one count of money laundering for his participation in a mortgage fraud scheme.

According to a statement of facts filed with his guilty plea, Gittinger was a principal of Classic Title Agency, Inc. and helped close real estate sales. Between June 2003 and 2005, Gittinger received business and made money for performing closings of real estate sales. In 2003, Gittinger made various fraudulent representations on closing documents in which misrepresentations were made, then forwarded to financial institutions which funded loans for the property.

Gittinger agrees that for the purpose of the Sentencing Guidelines the amount of loss attributable to him is more than $400,000.00 but less than $1,000,000.00. Conspiracy to Commit Bank Fraud carries a maximum penalty of not more than thirty years imprisonment, a fine of up to $1,000,000 (or twice the gross gain to the defendant or loss of the victim. Money Laundering carries a maximum penalty of not more than ten years imprisonment, a fine of up to $250,000 (or twice the gross gain to the defendant or loss of the victim.

Since I jokingly mentioned Ohio as a hot spot…I decided as this was being written to verify if I was dreaming or has Ohio become a mortgage fraud “hot spot?” Interestingly enough with little effort the following was found on the FBI’s web site under mortgage fraud.

• Analysis of available law enforcement and industry resources indicates that the top ten mortgage fraud areas are California, Florida, Georgia, Illinois, Indiana, Michigan, New York, Ohio, Texas, and Utah. Other areas significantly affected by mortgage fraud include Arizona, Colorado, Maryland, Minnesota, Missouri, Nevada, North Carolina, Tennessee, and Virginia. There is a strong correlation between mortgage fraud and loans which result in default and foreclosure.
• Recent statistics suggest that escalating foreclosures provide criminals with the opportunity to exploit and defraud vulnerable homeowners seeking financial guidance. Perpetrators are exploiting the home equity line of credit (HELOC) application process to conduct mortgage fraud, check fraud, and potentially money laundering-related activity.
• The FBI is proactively working with the mortgage industry in an effort to curb mortgage fraud crimes. The FBI signed a memorandum of agreement with the MBA to promote the FBI’s Mortgage Fraud Warning Notice.

Mortgage Fraud is defined as the intentional misstatement, misrepresentation, or omission by an applicant or other interested parties, relied on by a lender or underwriter to provide funding for, to purchase, or to insure a mortgage loan.

As a mortgage fraud and white collar crime speaker, I receive many calls from people who either think they may have become involved in committing some form of mortgage fraud or who have been convicted and wonder what is next. There is a clear pattern that seems to emerge. Either, the people involved are clearly doing what they know is wrong for immediate and personal (ill gotten) gain, or they are pushing the system for the purchase of property and doing so with the help of professionals who know where the gray areas are and just how far to push it.

Remember, if you do anything that is inaccurate and do so for the express purpose of having a financial institution to make a loan based on your representations - you may be guilty of mortgage fraud.

If you think you’ve been a victim feel free to comment!

White Collar Crime Speaker - Chuck Gallagher - signing off…

White Collar Crime - So You Think You Invested Your Money? Mark Wayne Jaster Sentenced to Prison for Massive Fraud Scheme!

Some people have innate gifts. In the case of MARK WAYNE JASTER it must have been the power of persuasion, as this Texarkana, Texas man was successful at persuading investors to give him over $1.1 million dollars to invest.

PROBLEM: He invested none of it. Not one red cent! His skill to persuade was used in a misguided way and now he’s set to reap the rewards of his choices. Every choice has a consequence. In the case of MARK WAYNE JASTER, United States Attorney John L. Ratcliffe announced that 48-year-old Texarkana, Texas man, JASTER, has been sentenced to 78 months in federal prison for wire fraud.

MARK WAYNE JASTER was indicted on April 3, 2007 and charged with defrauding investors through a wire fraud scheme. He pleaded guilty to that charge on August 29, 2007 and was sentenced today to 78 months in federal prison by United States District Judge David Folsom. Jaster was also ordered to pay restitution in the amount of $1,134,623.30.

According to information presented in court, between 2002 and 2005, Jaster represented to investors that he was involved in the business of personal investment services. Jaster told those investors that he actively managed money through his InvestWise account at A.G. Edwards and Sons, Inc. in Texarkana, Texas. He claimed that through investing in various investments such as real estate, stocks, mutual funds, and pension funds, he achieved significant returns for his investors.

NOTE: There are many great investments out there, but, when someone tells you that they get great returns for their clients - “here, invest you money with me! Well, beware - there’s a fair chance it’s a scam. Use your common sense and check the investor out. It’s too easy these days to do that with the internet.

Jaster had some investors deposit money directly into his Mark Jaster DBA InvestWise account at Hibernia Bank. However, instead of using the money for investments, he would use it for his own personal expenses. Jaster had other investors open accounts at A.G. Edwards for the purpose of depositing funds for investments. After gaining signatory authority over these accounts, Jaster would then transfer the funds to his InvestWise account at A.G. Edwards to be used for his personal expenses.

During this time, Jaster would speak with the investors, advising them that their investments had grown significantly, and would send e-mails to the investors with false representations as to the status of their investments and legitimacy of the investments. None of the money Jaster received from investors was ever invested.

NOTE: If you’ve invested your money with an investment representative you should be able to get your account status on-line or at a minimum verify the investment status with someone other than the person who took your money to invest.

COMMENT: As a former white collar criminal (not something I am proud of) I did essentially the same thing as JESTER. I took clients money - used it for personal purposes (lifestyle) and ended up in exactly the same spot. Had either the clients done their “due diligence” by checking me and the investment I was representing out, or had they checked with someone other than me about the status of their investment, they would have found out the truth. In fact, the fraud was uncovered when ONE client sought information about his investment from someone other than me.

Every choice has a consequence. I am living proof that you do reap what you sow. And while JESTER is headed for prison, there is hope that he might learn from this experience. Today, as a speaker, I address college kids in business schools for free - it’s my way of warning them about the law of choices and consequences. This service was recently reported on in Business Week. See the article here.

For information on my presentations to colleges and universities or business associations, contact me at www.chuckgallagher.com.

West Virginia Dentist James E. Kirkpatrick, III Sentenced to Prison for Drug Fraud

Going to prison for drugs isn’t limited to “so called” drug dealers. An Ohio man was just sentenced to prison for his role in obtaining drugs illegally.

JAMES E. KIRKPATRICK III, DDS, 44, who resides in Belpre, Ohio, was sentenced to eight months in prison for fraudulently obtaining hydrocodone. KIRKPATRICK previously pled guilty in January 2008, to a one-count information. DR. KIRKPATRICK’S office is in Parkersburg, WV. He began practicing in West Virginia after losing his Ohio dental license.

Information related to his Ohio license is here.

The conviction is the result of an investigation conducted by the Drug Enforcement Administration and the Washington County, Ohio, Major Crimes Task Force. The investigation revealed that at least three patients received prescriptions for controlled substances from KIRKPATRICK and then gave some or all of the drugs back to KIRKPATRICK for his personal use. Pharmacy records indicate the patients received multiple prescriptions for controlled substances from KIRKPATRICK in 2006 and 2007.

At sentencing, DR. KIRKPATRICK apologized to one of the patients from whom he attempted to fraudulently obtain hydrocodone following his January 2008 plea of guilty in Federal Court.

Every choice has a consequence. Often, as a speaker, I share that statement with my audiences. But, what is also true is - behavior changes only when the consequences become so significant that you want behavior to change. While losing his Ohio license may not have been directly related to the drug charge that sent Kirkpatrick to prison, certainly prison will be another consequence that will change his life.

Perhaps upon his release, Kirkpatrick can use the experience in a positive way to benefit others.

For now, business ethics and white collar crime speaker - Chuck Gallagher - signing off…

And I Only Thought It Was George Washington Who Chopped Down the Cherry Trees!

You gotta be careful when you enter the national forests in this country…cause the rules are - only George Washington can chop down a cherry tree.

O.K. - being a bit serious…here’s one that I know won’t make national attention - hence it deserves a mention on this blog just for posterity.

United States Attorney Mary Beth Buchanan announced today, May 5, 2008, that Joseph Michael Harvey, a resident of Ridgway, Pennsylvania, pleaded guilty in federal court to a charge of theft of government property. 

WHAT DID HE TAKE YOU MIGHT ASK?

Harvey, age 40, pleaded guilty to one count and Assistant United States Attorney Marshall J. Piccinini advised the court that Harvey and another co‑defendant stole property belonging to the United States, by cutting down and removing approximately 11 black cherry trees from the Allegheny National Forest, having a value in excess of $1,000.00.

NOW WHAT THE HECK WOULD ANYONE WANT WITH 11 DEAD BLACK CHERRY TREES?

Judge McLaughlin scheduled sentencing for July 31, 2008 at 10:00 a.m.  The law provides for a total sentence of ten years in prison, a fine of $250,000, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.

Wow…as a white collar crime speaker, I’ve got to mark this date on my calendar just to see what kind of sentence is issued for a tree chopper.

Credit Card Fraud Earns Julia N. Bell Prison and Substantial Restitution! Comments by Fraud Speaker Chuck Gallagher

Wow…every choice has a consequence.  Every presentation I make that statement is made.  And, sure enough it is true!

Take, for example, Julia N. Bell.  Seems that she went shopping, took vacations, and ate in restaurants.  She did what normal people do every day.  The only difference is that she did all of these things using the credit card of the company she worked for. 

Now, most would think that when the bill came it, such a simple fraud would be caught.  But alas…no.  Seems that Bell was the office manager.  So, not only did she use the card for her personal gain, but she paid the card from the company’s funds that she controlled.

Guess she thought as long as she controlled it…no one would notice.

Now in order for most white collar crimes to exist there has to be three things: (1) need; (2) opportunity and (3) rationalization.  While I can’t speak to #1 or #3 - the clear lack of internal controls allowed for #2 to work in Bell’s favor.  As a white collar crime and fraud speaker, more times than not it is #2 that has the greatest potential to either allow or prevent white collar crime.

In Bell’s case, she was sentenced in federal court for wire fraud.    United States District Judge Cameron McGowan Currie sentenced Bell to 21 months in prison and ordered her to pay more than $140,000.00 in restitution.

If you know Julia N. Bell, feel free to comment.  My guess is that she is a nice lady who got caught up in her own illusion.  Now she will find that nothing she bought will be worth the time she will spend in prison.

White Collar Crime Speaker - Chuck Gallagher - signing off…

Facing Federal Prosecution - Here’s a Book You Might Need! White Collar Crime Speaker Chuck Gallagher makes Recommendation.

Let me say on the front end, as a business ethics speaker, I try to make sure that when I write I do so in an ethical manner. Full disclosure is critical to living an honest and ethical life. So with that said, I am exposing a book here that I am told that it is the best of its kind. I have no financial interest in this book, the publisher of this book or the author, so my recommendation is based on value. So here goes…

Whether you are facing federal charges or are being sentenced into federal prison, this book provides helpful information that can help provide a successful outcome.

About the Author of Busted By the Feds: A Manual for Defendants Facing Federal Prosectuion -

The federal sentencing guidelines took effect in November 1987. I spent the following two years working with inmates at the federal prison in Phoenix, Arizona helping with appeals and post-conviction motions.

The inmates at Phoenix in those years came from all over the country (and all over the world), and I heard hundreds of stories from my clients about how they had been mistreated, tricked, lied to, and just generally screwed by the system as they tried to defend themselves against federal charges under the new guidelines system.

Although I tended to believe their stories, I also found it hard to completely accept many of the tales that I heard, and I always took them with at least a grain of salt. Then I moved to Tucson, where I spent 1990, ‘91 and ‘92 working with inmates in that federal prison.

F.C.I. Tucson is unusual in the federal system in that it was originally built as an M.C.C., essentially a local jail to house pre-trial prisoners, then was changed over to an F.C.I. for sentenced inmates before it even opened its doors. As a result, it continued in both roles: a mix of sentenced prisoners serving their sentences there and pre-trial prisoners held in the Yucca Unit while they fought their cases.

As I had in Phoenix, I began to help sentenced inmates with their appeals and writs, but very quickly the pre-trial inmates began coming to me for help. As word got around, hundreds of them sought me out for advice.

During the 2-1/2 years I worked in the law library at F.C.I. Tucson, I assisted over 500 pre-trial inmates who were fighting their cases. It was during this period that I began to experience, first-hand, many of the tricks and deceits that I had been hearing about in Phoenix.

Prison inmates who read Busted by the Feds invariably tell me, “That’s exactly what happened to me!” By now I have personally experienced everything that I describe in this book many times over, albeit vicariously.

From 1987 through 2008, I have worked with pre-trial inmates fighting their cases in Louisiana, Arizona, New Mexico, Texas, and Colorado, in addition to more than a thousand sentenced inmates from all over the country, and everything that I describe in this book has occurred time after time after time in every federal district in the nation.

Larry Fassler,
Tucson Arizona, 2008

If you wish to obtain a copy…e-mail: sales@bustedbythefeds.com

White Collar Crime Speaker - Chuck Gallagher - signing off…

William J. Trier, II Faces Retirement in Prison for $5.2 Embezzlement - Comments by Chuck Gallagher White Collar Crime Speaker

The first step to a new life is to accept responsibility for your actions. Every choice has a consequence and after ten years of admitted fraud, William J. Trier, II has made a life changing choice - he plead guilty to an embezzlement scheme that lasted for ten years.

Now, as a white collar crime speaker, I must admit that it is generally unheard of for a white collar crime to last for that period of time. More times than not they fall apart before a decade passes.

William J. Trier, II, 57, of Williston, South Carolina, pled guilty today to embezzling approximately $5,200,000.00 from his former employer and to money laundering.

Trier worked at Crane Co., a vending machine manufacturing company in Barnwell County, as the director of logistics in the shipping department. From 1997 through October 2007, Trier embezzled funds from Crane by creating phony invoices from two fictitious freight transport companies and submitting them to Crane for
payment. He used his position to approve the payment of the fraudulent invoices, and received company payments mailed to a Post Office box he had opened as the mailing address for the phantom companies. Over a ten year period, Trier collected approximately $5,200,000.00 using the false invoice scam.

The maximum penalty Trier faces is twenty years imprisonment and a fine of $250,000. Trier must also make full restitution and has agreed to forfeit millions of dollars in assets towards restitution.

Wow…$5.2 million over ten years. This case is a classic example of lack of effective internal control. The ability to create an invoice and approve said invoice enabled Trier to effect this fraud. White collar crime consists of three parts: (1) need; (2) opportunity and (3) rationalization. While I can’t speak to Trier’s need, the opportunity was created thru simple lack of controls. Crane could have at any time thwarted the fraud with effective auditing and control mechanisms in place. As to “rationalization” - who knows, other than the longer a white collar criminal gets by with the crime, the greater the chance the white collar criminal thinks that the action is actually O.K. If I don’t get caught, I won’t get caught is the idea.

Every choice has a consequence. As a white collar crime and business ethics speaker, I speak from first hand experience about the truth about consequences. Reality is - no one escapes the consequences of their choices. While Trier may have enjoyed his good for a time and avoided the consequences - he did not avoid the consequences all together. Prison is no fun and Trier is facing many years plus substantial restitution for his conviction. Likely he will serve time and that will prove to be a dramatic change from his prior activities. You do reap what you sow.

If anyone reading has any background on Trier - feel free to comment as I study the behaviors and backgrounds of those convicted of white collar crime.

White Collar Crime Speaker - Chuck Gallagher - signing off…

A Ferrari, A Bentley and a Federal Indictment - Andrew Maxwell Parker Finds Himself on the Wrong Side of the Law!

Every choice has a consequence! May 2008 will be remembered by 40-year-old Andrew Maxwell Parker, owner of San Antonio Trade Group, Inc., since he was indicted on conspiracy, wire fraud, money laundering, false statements and tax charges. It appears that Parker’s choices may be having unexpected consequences.

Parker’s indictment alleges that from February 2003 to November 2006, Parker schemed to defraud the Export-Import Bank of the United States (Ex-Im Bank) by stealing millions of dollars in loan proceeds from private U.S. lenders to Mexican business owners and causing multi-million dollar losses to Ex-Im Bank who guaranteed or insured those loans based on false applications and support documentation submitted by Parker. The indictment also charges Parker with defrauding lenders in transactions not insured or guaranteed by the Ex-Im Bank.

The indictment further alleges that Parker attempted to evade paying taxes owed in calendar years 2003 and 2004 by disguising account transfers of $588,000 and $816,720.55, respectively. Parker allegedly claimed the money was used to purchase equipment being exported to Mexico when in fact, he used the $588,000 to purchase a house in Dallas, Texas, and the $816,720.55 to purchase two Ferrari automobiles and one Bentley automobile for himself. He also funneled money to relatives, all from nominee accounts. Furthermore, the indictment alleges that he under-reported his actual income on his 2003 and 2004 tax returns.

In all, Parker is charged with conspiracy, nine counts of wire fraud, two counts of use of a false document, 12 counts of money laundering, two counts of tax evasion, and two counts of filing a false income tax return. The indictment also seeks the criminal forfeiture of his San Antonio residence at 407 E. Wildwood Dr. and his 2004 GMC Hummer H2, plus a monetary judgement in the amount of $10 million representing proceeds obtained directly or indirectly as a result of Parker’s alleged scheme.

While an indictment is only a formal accusation of criminal conduct and not evidence of guilt, rarely does the US Attorney’s office lose a case like this. More than likely this will be an open and shut case. The government may not get a conviction on all charges, but they will get a conviction. Considering the recency of the indictment, my guess is that Parker will use his resources to secure legal help in reaching a plea agreement that will minimize his prison time. Although Parker’s lawyer, John Pinckney, said Parker denies the allegations and wants a jury trial. If convicted he will likely spend substantial time in federal prison.

Parker has been the target of the FBI and criminal investigators of the Internal Revenue Service over more than $163 million in loans backed by the Export-Import Bank of the United States. The bank is a little-known federal agency that is supposed to help American companies export their products by backing high-risk loans to foreign businesses that are supposed to buy the products. It works with some private commercial lenders to get the loans and has to pay with taxpayer funds if the borrower defaults. Court records allege millions of dollars of loans handled through Parker defaulted and the bank had to cover them.

“I have been calling for a (Congressional) investigation because there is ample evidence that hundreds of millions of dollars of taxpayer money is simply disappearing from the Export-Import Bank as they appear to be guaranteeing loans to businesses that don’t exist,” said Congressman Jeb Hensarling of Dallas. “A lot of money was provided to companies and they never, ever repaid the loans. The bottom line is this a mess, it deserves a full investigation. I don’t know of the particulars of the case in San Antonio, but it is further evidence of federal program that has run amok and needs accountability and an investigation.”

“It started out as a well-intentioned program… but there is no oversight, like a board of directors in private (banking), to ensure that things aren’t hinky,” said David Williams, vice president of policy for Washington-D.C.-based watchdog Citizens Against Government Waste. “The federal government has been notorious about its lack of oversight. The last thing we need is a corporate welfare program that has no oversight on it.”

Every choice has a consequence. As a white collar crime and business ethics speaker, I speak from first hand experience about the truth about consequences. Reality is - no one escapes the consequences of their choices. While Parker may have looked good for a time and avoided the consequences - he did not avoid the consequences all together. If convicted Parker will find that prison is no fun and likely will be facing many years plus substantial restitution for his conviction. Serving time will prove to be a dramatic change from his prior activities. You do reap what you sow.

If anyone reading has any background on PARKER - feel free to comment as I study the behaviors and backgrounds of those indicted for white collar crime.

White Collar Crime Speaker - Chuck Gallagher - signing off…

THIS JUST IN…another reader provided these links related to Export-Import Bank frauds and sentences. See here and here.

Thanks!!!