Three San Jose family members who were previously accused of tax fraud related to their charter bus company have now been hit with new, additional charges of home loan fraud.
Brothers Fidencio and Arturo Moreno of San Jose are co-owners of Quality Assurance Travel Inc., based in Santa Clara. Elena Moreno, who is married to Fidencio Moreno, is the company’s bookkeeper.
Among other services, the company ran charter buses to the Chukchansi Gold Resort & Casino, operated by the Picayune Rancheria of the Chukchansi Indians, in Coarsegold, Madera County, between 2006 and 2010.
The trio was previously indicted by a federal grand jury in San Jose in 2012 on charges of conspiring to commit tax fraud and filing false tax returns by failing to report $952,000 in cash receipts from trips to the casino over four years.
That indictment alleged the defendants reported checks paid by the casino for bus service contracts for the years 2006 through 2009, but did not report additional cash payments of $20 by passengers who were not preferred customers of the casino.
The new charges were lodged in a superseding indictment issued by a federal grand jury on Thursday.
All three family members are accused of conspiring to commit wire fraud and bank fraud in connection with mortgage loans on five residential properties in San Jose between 2005 and 2013.
The expanded indictment alleges they made false statements about their financial condition and intended use of the property.
The indictment seeks forfeiture of three of the properties and of $3,328,600 gained from the allegedly fraudulent loans.
U.S. Attorney Melinda Haag said that if convicted, the three defendants could be additionally ordered to pay restitution to the U.S. Internal Revenue Service and to the banks that provided the loans.
In addition to the bank and wire fraud conspiracy charge, Fidencio Moreno is accused of four counts of making false statements on loan applications. Elena Moreno is accused of making one false statement and the husband and wife together are charged with two other false statements.
In the tax section of the indictment, all three family members are accused of conspiring to defraud the U.S. Internal Revenue Service.
Arthur Moreno is accused of filing false returns for Quality Assurance Travel for the 2007 and 2008 years and Fidencio Moreno is charged with filing a false company return for 2009.
All three defendants are also charged with filing false individual tax returns for the years 2006 through 2009.
The new indictment does not specify the total amount of allegedly unreported income.
The charges carry maximum sentences of five years in prison for tax fraud conspiracy; three years for each false tax return; and 30 years for the bank fraud conspiracy and each false loan statement, if the defendants are convicted.
Copyright © 2014 by Bay City News, Inc. — Republication, Rebroadcast or any other Reuse without the express written consent of Bay City News, Inc. is prohibited.
Comment Advisement We welcome your thoughts, but for the sake of all readers, please refrain from the use of obscenities, personal attacks or racial slurs. All comments are subject to our terms of service and may be removed. Repeat offenders may lose commenting privileges.