Operators of Michigan Businesses Charged with Tax Conspiracy and Wire Fraud

A federal grand jury in Flint, Michigan, returned an indictment today charging Michael Angelo (Angelo), Hassan Kamal Fayad, Mirna Kamal Fayad, Cory Justin Mann, Thomas Reed Quartz and Rosina Angelo with conspiring to defraud the IRS and other crimes.

According to the indictment, from close to 2011 to 2022, Angelo owned and operated a community of corporate entities that delivered clinical, legal and transportation providers to automobile crash victims. To disguise his ownership of the entities, Angelo allegedly designated nominee proprietors more than some of the entities. Hassan Kamal Fayad, Mirna Kamal Fayad, Mann, Quartz, Rosina Angelo and some others allegedly served Angelo run the entities.

The indictment alleges that sure other people had entry to Michigan targeted traffic crash experiences that had been attained via both equally lawful and unlawful suggests. Angelo allegedly directed these men and women to get hold of crash victims and give them services furnished by Angelo’s network of entities. The network of entities allegedly acquired thousands and thousands of dollars in revenues throughout the many years Angelo owned and operated them, but Angelo did not report all of this money to the IRS. To conceal profits acquired by the entities, Angelo and his co-conspirators allegedly directed payments the entities acquired to financial institution accounts he owned and controlled. The indictment alleges Angelo made use of some of the resources to pay his personalized bills.

In addition to defrauding the IRS, Angelo, Hassan Kamal Fayad and Mann also allegedly defrauded 3rd-occasion finance providers that experienced bought the suitable to payments from some crash victims who had acquired providers from entities they owned. According to the indictment, Angelo, Hassan Kamal Fayad and Mann sold to these finance businesses the rights to certain payments due for invoices issued to individuals and customers that really had by now been paid out or settled. The three defendants then allegedly hid some of this cash flow from the IRS to avoid spending taxes on this revenue.

All 6 defendants are billed with one or more counts of conspiring to defraud the IRS. If convicted, each faces a maximum of five many years in jail for just about every these kinds of rely. In addition, if convicted: Angelo faces a most of 20 yrs in prison for each and every of five counts of wire fraud and a optimum of 5 a long time on just about every of two counts of tax evasion Hasan Kamal Fayad faces a most of 20 decades in jail for each and every of 13 counts of wire fraud and a mandatory minimum amount of two decades in jail for 1 rely of aggravated id theft and Mann faces a most of 20 many years in jail for each and every of a few counts of wire fraud. A federal district court choose will ascertain any sentence just after contemplating the U.S. Sentencing Recommendations and other statutory things.

Performing Deputy Assistant Legal professional Basic Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

The FBI and IRS-Prison Investigation division are investigating the circumstance.

Demo Lawyers Mark McDonald and Christopher P. O’Donnell of the Justice Department’s Tax Division are prosecuting the scenario.

An indictment is merely an allegation, and all defendants are presumed harmless until eventually verified responsible further than a fair doubt in a court docket of law.