In response to financial crimes in America, President Obama established the Financial Fraud Enforcement Task Force (Task Force) as a means to investigate and charge people who have participated in financial fraud schemes. One of the goals of the Task Force is to help victims of these types of crimes recover what they lost.
As a result of one of these investigations, two Wisconsin men were recently sentenced in federal court under charges of mortgage fraud and tax fraud. There are three others involved in the scheme, two of whom will be sentenced in the next few weeks. The mortgage fraud scheme caused victim losses totaling hundreds of thousands of dollars. The tax fraud scheme resulted in tax losses close to a million dollars.
Both schemes were conducted through a tax preparation business owned by the mother of one of the men charged. In both fraud schemes, she directed employees to destroy evidence, removing all documents that were falsely filed or could lead back to her business. This act is considered the obstruction of an ongoing federal investigation and is also considered criminal under the law.
In instances of white collar crime such as financial fraud, the government will investigate and prosecute when there is enough evidence to do so. They take this type of crime very seriously and are not afraid to punish with heavy fines and prison time.
When charged with financial fraud, it is sometimes possible to get criminal charges reduced. Some people who find themselves as the target of a fraud investigation are individuals who were just acting on the orders of a higher authority. For others, they just got too caught up in taking a little bit of money at a time, not realizing how quickly it can add up. For these two individuals, they are both facing a year and a day in prison for their actions and will not forget the impact this will have on the rest of their lives.
Source: NBC Madison online, "Two Sentenced in Mortgage Fraud and Tax Fraud Schemes," 27 October 2010