The United States Attorney's Office

Southern District of Florida

Public Affairs Office:

Alicia Valle
Special Counsel to the U.S. Attorney
(305) 961-9153

Yovanny Lopez
Public Affairs Specialist
(305) 961-9316

Public Affairs Fax
(305) 530-7055

Press Release

TAX CHARGES ADDED TO MORTGAGE FRAUD INDICTMENT

April 2, 2008

FOR IMMEDIATE RELEASE

R. Alexander Acosta, United States Attorney for the Southern District of Florida, Jonathan Solomon, Special Agent in Charge, Federal Bureau of Investigation, and Michael E. Yasofsky, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announced that a federal grand jury in West Palm Beach, Florida, charged Gregory Claude Brown in a superseding indictment with failing to timely file his federal income tax returns for the 2001 through 2005 tax years, and with income tax evasion with regard to his 1998, 1999, and 2001 through 2005 taxes. According to the superseding indictment, Brown failed to pay his 1998, 1999, and 2001 through 2005 income tax liabilities, which totaled approximately $214,299, and engaged in affirmative acts of evasion, including concealing his income and assets, filing false documents with the Internal Revenue Service, and placing funds and property in the names of nominees.

Previously, on December 11, 2007, the same grand jury charged Brown and co-defendant Monica Martinez with conspiracy to commit wire fraud and wire fraud in connection with applications for mortgages in South Florida. On February 12, 2008, the grand jury charged Brown with an additional count of mail fraud in connection with a mortgage application delivered to Countrywide Home Loans, and also charged co-defendant Wilfredo Martinez with conspiring with Brown and Monica Martinez to commit wire fraud and substantive wire fraud counts.

Specifically, the indictment charges that defendants Brown, Monica Martinez, and Wilfredo Martinez made false representations in mortgage loan applications and received mortgages based on the false information. The mortgaged properties listed in the indictment include 326 Kenilworth Boulevard, West Palm Beach; 186 Yale Circle, Lake Worth, Florida; 2409 Zeder Avenue, Delray Beach, Florida; 245 Fordham Drive, Lake Worth, Florida; 109 Paradise Harbor Drive, North Palm Beach, Florida; 4607 Arlette Court, Lake Worth, Florida; and 5585 Coconut Road, West Palm Beach, Florida. The indictment further alleges that the defendants fraudulently obtained more than $1.6 million in loan funds from mortgage companies.

If convicted, Brown faces up to one year in prison on the failure to timely file federal income tax return counts, and up to five years on the tax evasion count. The conspiracy to commit wire fraud, wire fraud, and mail fraud charges each carry a maximum penalty of 20 years imprisonment.

Mr. Acosta commended the investigative efforts of the IRS and FBI. The case is being prosecuted by Assistant United States Attorney Ellen Cohen and DOJ Tax Division Trial Attorney Stephanie Evans.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

 

 

 

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