Local CEO sentenced for tax fraud in federal court - 19 Action News|Cleveland, OH|News, Weather, Sports

Local CEO sentenced for tax fraud

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CINCINNATI, OH (FOX19) -

A Cincinnati woman has been sentenced in federal court to a year in prison and ordered to pay $202,806 in restitution to the Internal Revenue Service and the lender she defrauded in a mortgage fraud scam, the U.S. Attorney's Office said.

Regina Shields, 41, pleaded guilty last June to one count of filing a false income tax return and one count of wire fraud.

Shields formed a non-profit corporation called Free Truth Enterprises and has served as the president and CEO since 2000, according to court documents. From 2007-2010, Shields filed federal income tax returns with the IRS claiming $61,315 in false claims for income tax refunds.

"The mortgage loan offense involves a brazen scheme whereby she bid for and won a sheriff's auction for a property that was in foreclosure," Assistant U.S. Attorney Tim Mangan told the court.

"She then purported to pay for the property using a check that had insufficient funds. To make matters worse, the defendant then used this temporary appearance of title to apply for a sizable loan from Quicken Loans in excess of $140,000. She then used the proceeds to purchase a luxury car."

Shields' sentence includes restitution to the IRS in the amount of $61,315, and restitution in the amount of $141,491 to Title Source Inc. (related to Quicken Loans).

 

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