September 28, 2022

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Operators of Michigan Businesses Charged with Tax Conspiracy and Wire Fraud

12 min read

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 approximately 2011 to 2022, Angelo owned and operated a network of corporate entities that provided medical, legal and transportation services to automobile crash victims. To disguise his ownership of the entities, Angelo allegedly designated nominee owners over some of the entities. Hassan Kamal Fayad, Mirna Kamal Fayad, Mann, Quartz, Rosina Angelo and others allegedly helped Angelo operate the entities.

The indictment alleges that certain other individuals had access to Michigan traffic crash reports that were obtained through both lawful and unlawful means. Angelo allegedly directed these individuals to contact crash victims and offer them services provided by Angelo’s network of entities. The network of entities allegedly earned millions of dollars in revenues during the years Angelo owned and operated them, but Angelo did not report all of this income to the IRS. To conceal income earned by the entities, Angelo and his co-conspirators allegedly directed payments the entities received to bank accounts he owned and controlled. The indictment alleges Angelo used some of the funds to pay his personal expenses.

In addition to defrauding the IRS, Angelo, Hassan Kamal Fayad and Mann also allegedly defrauded third-party finance companies that had purchased the right to payments from some crash victims who had received services from entities they owned. According to the indictment, Angelo, Hassan Kamal Fayad and Mann sold to these finance companies the rights to certain payments due for invoices issued to patients and clients that actually had already been paid or settled. The three defendants then allegedly concealed some of this income from the IRS to avoid paying taxes on this income.

All six defendants are charged with one or more counts of conspiring to defraud the IRS. If convicted, each faces a maximum of five years in prison for each such count. In addition, if convicted: Angelo faces a maximum of 20 years in prison for each of five counts of wire fraud and a maximum of five years on each of two counts of tax evasion; Hasan Kamal Fayad faces a maximum of 20 years in prison for each of 13 counts of wire fraud and a mandatory minimum of two years in prison for one count of aggravated identity theft; and Mann faces a maximum of 20 years in prison for each of three counts of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

The FBI and IRS-Criminal Investigation division are investigating the case.

Trial Attorneys Mark McDonald and Christopher P. O’Donnell of the Justice Department’s Tax Division are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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