Acting U.S. Attorney Louis D. Lappen announced Friday a Philadelphia man was sentenced to 60 months in prison for one count of conspiracy to defraud the Internal Revenue Service and one count of conspiracy to commit bank and loan fraud.
Thirty-nine-year-old Zaki M. Bey prepared and submitted fraudulent mortgage application to several financial institutions. Bey secure over $2 million in loans on approximately thirteen properties in New Jersey and Philadelphia in 2007 and 2008. Bey conspired with others to create fraudulent loan applications on behalf of “straw buyers” that included false information on the straw buyers assets, income and intent to occupy the properties. Bey also provided banks with fraudulent paystubs, financial statements and payroll account documents, according to court documents.
Bey owned and operated a company named Natural Home Builders, which received payout for construction expenses that ranged between $17,864.26 and $60,000 at the closing of each settlement. Bey’s company did not perform any construction on the properties in question. He received $435,074.26 in settlement proceeds from construction expenses.
Bey also filed fraudulent income tax returns for 2007, 2008, 2009 and 2010, claiming tax withholding payments and 1099 income for Natural Home Builders. Bey obtained $148,296 from the IRS, even though he attempted to obtain $1,141,677. When the IRS detected a deficiency in Bey’s tax return, he made a payment in the form of a check from a closed bank account.
Bey submitted fraudulent vehicle loan applications to dealerships in New Jersey and Philadelphia. He successfully obtained about seven vehicles through the use of straw buyers.