Tuesday, April 3, 2007
Family indicted in suspected Newport Beach scam
Woman, son and sister turn themselves in Tuesday; second son arrested Monday.
By KIMBERLY EDDS
The Orange County Register
SANTA ANA – A woman, one of her sons and her sister, indicted on fraud and other charges in connection with a suspected family tax and real estate scam that netted about $3 million, turned themselves in to federal authorities Tuesday morning. The woman’s other son was arrested Monday on charges he took part in the alleged scheme.
Federal prosecutors say Safieh Fard, of Escondido, ran a family operation switching Newport Beach rental properties among her two sons, Mohsen and Ahmad Kikalaye, and her sister, Sedigheh Bahramian, of Irvine, to avoid showing profit and having to paying taxes.
All four were indicted March 28 by a federal grand jury on charges they conspired to obstruct the Internal Revenue Service and laundered money. The case was a result of an investigation by the IRS and U.S. Immigration and Customs Enforcement.
According to prosecutors, Fard bought real estate on West Oceanfront in Newport Beach and sold it to her sons and her sister. The family swapped the properties among themselves. The properties were sold to other buyers – but Fard, Bahramian and her sons did not report the profit from the sales.
A property at 2312 West Oceanfront netted the family about $1.9 million in profit – but they never paid taxes on the income, prosecutors allege. Sales of another property at 2400 West Oceanfront gave the family about $1.1 million in profit – on which they never paid any income tax, prosecutors said.
Prosecutors also say the family set up loan packages that grossly exaggerated their personal income and assets to qualify for the mortgage loans.
Ahmad Kikalaye, of Irvine, is accused of making seven withdrawals from Bank of America – each transaction less than $9,000 to avoid cash transaction reporting requirements. Ahmad is also accused of laundering nearly $1.6 million in five more transactions.
“The crimes of loan fraud, money laundering and evading taxes erode the foundation of our government,” said Debra D. King, special agent in charge of the Internal Revenue Service’s Criminal Investigation Division in Los Angeles. “This indictment and these arrests send a clear message that our government will not tolerate financial crimes for profit.”
Ahmad Kikalaye faces 215 years in federal prison and fines of $5.5 million if convicted on all charges. Fard faces 25 years in federal prison and fines of $750,000. Mohsen Kikalaye, of Escondido, faces 25 years in federal prison and fines of $750,000. Bahramian faces 25 years in federal prison and fines of $750,000.
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