On May 5, 2011, in Charlotte, N.C., Demetrius G. Rainer was sentenced to 36 months in prison followed by three years of supervised release. Rainer was a licensed attorney in the state of North Carolina and served as a closing attorney. According to court documents, Rainer and others participated in a mortgage fraud scheme that falsely inflated the price of real estate properties to obtain mortgage loan proceeds from lenders in excess of the property’s true value. The excess proceeds were then distributed among the participants at closing. Participants in the scheme prepared false loan packages and settlement statements. Rainer and other attorneys received proceeds of the fraud in their trust accounts and then distributed the proceeds to other participants in the fraud. The funds were then typically used to finance similar schemes.
On May 6, 2011, in Tulsa, Okla., William Edward Clymer, a doctor located in Pawnee, Oklahoma, was sentenced to 24 months in prison, three years of supervised release, and ordered to pay $350,793 in restitution to the Internal Revenue Service (IRS). He was also ordered to cooperate with the IRS in filing his 2003-2005 taxes. On January 3, 2011, Clymer pleaded guilty to tax evasion for calendar year 2003. Clymer admitted he committed tax evasion by filing a false tax return for 2003, which falsely understated his taxable income and tax due. The government alleged that Clymer had failed to comply with his tax obligations from 2000 to the present.
On November 23, 2010, in Pittsburgh, Pa., Edward Siceloff was sentenced to 12 months in prison to be followed by 12 months of supervised release on his conviction of failing to file a tax return. According to information presented to the court, during 2004, Siceloff received income in the amount of approximately $763,926 from his sales of corporate stock, but he failed to file his income tax return for that year.