Thursday, January 24, 2013

Nonprofit CEO Faces Fraud Charges

The CEO of a nonprofit that aids disadvantaged youth and families in Cincinnati, OH, was indicted by a federal grand jury today on charges of tax and mortgage loan fraud.

Regina Shields, who is the head of Free Truth Enterprises (FTE), faces, among other charges, four counts of filing false claims for federal income tax refunds, and one count of wire fraud, according to a report in The Business Courier. She is currently free having been released on bond.

According to court documents, Shields allegedly filed federal income tax returns claiming that she received significant W-2 wages and witholdings from FTE. As a result of those deductions, Shields was paid $61,315 in salary from 2007-2010. The indictment goes on to allege that FTE did not have significant receipts or engage in charitable activity.

Shields also faces charges regarding an alleged mortgage fraud scheme involving a property at the address 2985 Timbercrest Drive. The indictment states that she allegedly wrote a $164,000 check through the name Property Negotiation Group for the property during a sheriff's sale. That check was subsequently returned after the bank account it belonged to was revealed to have insufficient funds.

You can read the full story in The Business Courier.

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