Warren and Indiana men sent to federal prison

Staff report

CLEVELAND

A Warren man and an Indiana man, who pleaded guilty to defrauding banks out of about $2.5 million through fraudulent short sales of Youngstown-area gas stations, were sentenced to prison Wednesday in federal court.

Shaukat Sindhu, 56, of Warren, who pleaded guilty to two counts of conspiracy to commit bank fraud, one count of corrupt interference with the administration of the IRS and one count of marriage fraud was sentenced to 45 months in prison and ordered to make restitution to the banks and the IRS.

Tahir Iqbal, 48, of Crown Point, Ind., who pleaded guilty to two counts of conspiracy to commit bank fraud and three counts of bank fraud, was sentenced to a year and a day in prison.

The sentences were imposed by U.S. District Court Judge Donald C. Nugent.

Sindhu owned several gas stations and other commercial property, but at times failed to make mortgage payments, the U.S. attorney said.

He and Iqbal defrauded First Midwest and Consumers National banks by making false and misleading representations about ownership of the properties over a six-year span.

Iqbal reportedly acted as a front for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principal owed on the property, the U.S. Attorney said.

Iqbal also reportedly served as a front when Sindhu purchased a nine-bedroom house in Oak Brook, Ill.

“These defendants took advantage of a program designed to help troubled property owners, and instead gamed it to enrich themselves. They will deservedly be trading their mansion for a prison cell,” said Carole Rendon, acting U.S. attorney for the Northern District of Ohio.

“Attempting to skirt your income-tax obligations by using multiple Social Security numbers, dealing in cash and concealing income and assets in the names of nominees is a recipe for criminal prosecution,” said Kathy Enstrom, special agent in charge for the IRS Criminal Investigation Division’s Cincinnati field office.

The case was investigated by the FBI, IRS and U.S. Immigration and Customs Enforcement.