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Individual Sureties Face Indictments and Prison Sentences

Wednesday, September 25, 2013  

The continuing problem of fraudulent individual sureties was made evident recently with the indictment of one individual surety and the sentencing of another. The U.S. Department of Justice recently announced a 23-count indictment charging Abel Martin Carreon with mail fraud, wire fraud, major fraud against the United States, aggravated identity theft, and money laundering. According to the indictment, between April 2005 and May 2011, Carreon submitted bonds to the government for contractors bidding various government contracts. Carreon listed fictitious individual sureties on the bond form and pledged as collateral common stock that did not exist or was substantially less than represented. In some cases, the collateral was pledged across multiple bonds. If convicted, Carreon faces a maximum statutory penalty for wire fraud, mail fraud, and money laundering of 20 years in prison.

In 2010, George D. Black, Sr., working through his company, Infinity Surety, was arrested on mail fraud charges for selling millions of dollars of fraudulent surety bonds, all purportedly backed by a house valued at far less than the aggregate value of bonds. The affidavit in support of the criminal complaint was based, in part, on an investigation the Texas Department of Insurance (TDI) performed on Black. SFAA provided information to TDI about bonds allegedly written by Black.

In August 2011, Black pled guilty to mail fraud. On September 6, 2013, the U.S. District Court for the Southern District of Texas sentenced Black to prison for 30 months followed by a supervised release of 3 years. The court also ordered Black to pay about $51,000 in restitution.


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