A Baltimore man is facing a up to 240 years in prison for running a $23 million tax fraud operation and engaging in a scheme to obtain more than $3 million in loans from four Maryland credit unions.
A federal jury in U.S. District Court in Baltimore convicted Makushamari Gozo on July 31 of 18 counts of making a false claim and five counts of bank fraud.
From July 2010 to September 2010, federal prosecutors said Gozo engaged in a scheme to defraud four credit unions to obtain fraudulent automobile and business loans.
He submitted loan applications to four credit unions to buy luxury automobiles, but Gozo never bought them, prosecutors said.
On the loan applications, Gozo made false statements about his income and employment to make himself appear like a successful businessman and to persuade the credit unions to approve the loan applications.
Court documents show Gozo applied for a $27,500 auto loan with the $2.6 billion State Employees Credit Union of Maryland in Linthicum; a $28,794 auto loan with the $318 million Signal Financial Federal Credit Union in Kensington; a $35,109 auto loan with the $415 million Cedar Point Federal Credit Union, and a $35,109 auto loan with the $394 million APL Federal Credit Union in Laurel.
Federal prosecutors also said Gozo submitted a fraudulent loan application to Signal Financial FCU for a $3 million business loan in the name of one of his sham companies. With his business loan application, Gozo attached several false corporate tax returns claiming that his company controlled millions of dollars in assets.
Gozo also was convicted of claiming more than $23 million in fraudulent alternative fuel tax credits and refunds and personal tax refunds.
He received over $370,000 in fraudulent federal tax refunds and caused the IRS to issue checks for more than $12 million in tax credits and refunds for alternative fuel that he falsely claimed his sham companies had purchased, according to federal prosecutors.