Press Release
DEFENDANT KHAN SENTENCED TO A TERM OF 41 MONTHS FOR MAIL FRAUD
January 3, 2008
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida and Michael K. Fithen, Special Agent in Charge of the United States Secret Service announced today that the defendant Steven Khan was sentenced by United States District Court Judge William P. Dimitrouleas in Ft. Lauderdale, Florida, on January 3, 2008, to a term of forty-one (41) months imprisonment and a term of 3 years of supervised release. He was also ordered to pay restitution in the amount of $1,040,458.70.
On June 21, 2007, a grand jury returned a twenty-seven (27) count indictment charging Steven Khan with mail fraud, in violation of Title 18, United States Code, Section 1341, and money laundering, in violation of Title 18, United States Code, Section 1956.
The indictment charged that Steven Khan was employed by M.L.S. Realty, Inc., as its principal broker from December 2001 through October 2006. His responsibilities included opening mail, collecting checks from M.L.S. Realty agents, delivering those checks to the accounting department and completing reports with instructions for the payment of commissions to M.L.S. Realty agents.
On October 11, 2007, Khan pled guilty to Count 1 of the indictment, which charged him with mail fraud. Based upon information contained in the indictment and the proffer of facts provided by the Assistant United States Attorney at the plea, from February 2004 through October 2006, Khan executed a scheme to defraud M.L.S. Realty by diverting and depositing commission checks payable to M.L.S. Realty into personal and business bank accounts which he owned and controlled. Khan opened two business accounts at Wachovia Bank in the name of "MLS Realty Commissions" and "MLS Realty Escrow." Khan was the sole signatory on both accounts and his home address was listed on the accounts.
Khan fraudulently deposited checks payable to his employer, M.L.S. Realty, in the amount of approximately $1,691,523.21, into the MLS Realty Commissions bank account. Khan subsequently issued checks from that account and deposited those checks into his personal bank account and the bank accounts of companies he controlled.
Mr. Acosta commended the investigative efforts of the United States Secret Service and the Broward Sheriff's Office. This case is being handled by Assistant United States Attorney Jennifer Keene.
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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