A shocking case of tax and mortgage fraud has come to an end as Steven R. Hinz, a former real estate businessman from Youngstown, Ohio, was sentenced to 9 years in prison and ordered to pay over $500,000 in restitution.
According to court documents, Hinz, 45, pleaded guilty last year to one count of conspiracy to defraud the United States, one count of making a false 2008 income tax return, fifteen counts of aiding and assisting the preparation of false income tax returns, and one count of conspiracy to commit bank fraud involving a mortgage fraud scheme.
As part of his scheme, Hinz and his accomplices recruited potential clients by promoting a false tax refund process, known as the OID process, which involved the preparation of fictitious IRS Forms 1099-OID. The scheme claimed large tax refunds using the OID process, resulting in at least 17 false tax returns for the year 2008, totaling over $3,000,000.
In addition to his prison sentence, Hinz was ordered to pay $458,302 in restitution to Wells Fargo Bank, $50,069 to the IRS, and $36,211 to the Department of Housing and Urban Development. Three other defendants, Heather L. English, Patricia A. Polk, and William E. Phillips, III, have also pleaded guilty in the case.
Hinz was arrested in Miami, Florida, in January 2012, and Polk was arrested in Sarasota, Florida, in February 2012. Phillips was arrested in Los Angeles in June 2012, after being deported from the Philippines upon request of the U.S. government.
The case was handled by Assistant U.S. Attorneys John M. Siegel and Henry F. DeBaggis and Tax Division Trial Attorney Robert C. Kennedy, following an investigation by the Internal Revenue Service, Criminal Investigation, the Office of Investigations of the Department of Housing and Urban Development Office of Inspector General, and the Federal Bureau of Investigation.
Hinz’s scheme to defraud the United States and banks highlights the importance of vigilance in the financial sector and the need for law enforcement to crack down on such crimes. The outcome of this case serves as a warning to those who would seek to exploit the system for personal gain.
Related Federal Cases
- Darrell A. Hall, Conspiracy to Distribute a Controlled Substance, Health Care Fraud, Tax Evasion, Ohio 2009 · Florida
- Jason Herceg, Mortgage Fraud Scheme and Elder Fraud Conspiracy, Ohio 2018 · Florida
- Steven Saris, Tax Evasion and Illegal Gambling, Ohio 2022 · Florida
- Steven Saris, Tax Evasion and Illegal Gambling, Ohio 2024 · Florida
- Jack R. Coppenger, Mortgage Fraud, Ohio 2006 · Florida
Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News