2003-07-09 - James, Maria and Rigberto Martinez - Indictment - News Release

Willingboro Couple Charged with Defrauding Mortgage Lenders

NEWARK - A Willingboro couple was indicted today on charges they defrauded mortgage lenders through the use of fictitious income tax returns, U.S. Attorney Christopher J. Christie announced.

Maria James, 58, a tax preparer, is charged in a four-count Indictment with conspiring with her husband Rigberto Martinez, 37, to defraud Cendant Mortgage Corporation, and with committing wire fraud against Cendant and Home American, another mortgage company. James is also charged with making a false statement to the IRS in connection with the representation of one of her taxpayer-clients. James is charged in all four counts of the Indictment while Martinez is charged only in the first two counts involving Cendant, according to Assistant U.S. Attorney Alain Leibman.

The Indictment alleges that Cendant was induced to make a $40,000 loan to allow Martinez to purchase a Brigantine condominium in 1999 based on fraudulent tax returns and Forms W-2 and other documents, which he supplied and which he and James prepared. The Indictment also charges that James falsified tax and related documents in 1998 in order to obtain a $135,000 loan from Home American in Bala Cynwyd, Pa. Finally, the Indictment alleges that James falsified a power of attorney form, claiming falsely to be an attorney and accountant, in order to represent one of her taxpayer clients in proceedings before the IRS.

Count One charges James and Martinez with conspiracy to commit wire fraud. Both defendants are charged in Count Two, wire fraud; James only is charged with Count Three, wire fraud; and James is charged in Count Four with making false statements.

Each of the counts carries a maximum penalty of five years in prison and a $250,000 fine.

Under U.S. Sentencing Guidelines, the U.S. District Judge to whom the case is assigned would, upon a conviction, determine the actual sentence based upon a formula that takes into account the severity and characteristics of the offense, as well as each defendant's criminal history. Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

An Indictment is a formal charge made by a grand jury, a body of 16 to 23 citizens, Christie noted. Grand jury proceedings are secret, and neither persons under investigation nor their attorneys have the right to be present. A grand jury may vote an Indictment if 12 or more jurors find probable cause to believe that the defendant has committed the crime or crimes charged.

Despite Indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and federal law.

Christie credited Special Agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney A. Davis, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Martin D. Phanco, with bringing the case.

The Government is represented by Assistant U.S. Attorney Leibman of the U.S. Attorney's Government Fraud Unit.

Defense Counsel:

James - Ross Begelman, Esq., Cherry Hill

Martinez - Paul R. Melletz, Esq. Cherry Hill