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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