Beginning at a time unknown to the Grand Jury, but no later than January 2006, and continuing through at least March 2009, MAHER TALAL MUHAWIEH knowingly and intentionally devised a material scheme and artifice to defraud lenders, and to obtain money and property by means of materially false and fraudulent pretenses, representations, promises and omissions.
To execute and in furtherance of the scheme, MUHAWIEH solicited and caused others to solicit at least $25 million from at least 80 prospective lenders based upon (a) promises and representations that the lenders’ funds would be used to purchase and to renovate specific properties in San Francisco, California, that would then be sold at a profit, and (b) promises and representations that MUHAWIEH would thereby achieve regular and high rates of return for the lenders with limited risk.
In truth, MUHAWIEH did not intend to use the lenders’ funds in the manner that he promised and represented to the lenders, and instead misappropriated and converted those funds to his own benefit and the benefit of others without the knowledge and authorization of the lenders. In fact, and contrary to his promises and representations to lenders, MUHAWIEH instead used the lenders’ funds to pay interest on loans from other lenders, for personal expenses and to invest in retail businesses located in San Francisco, California.
Of course he did purchase (and bid up the value of) a few homes in San Francisco too.
∙ Calling All Contractors That Still Have Cash… [SocketSite]
∙ United States of America v Maher Talal Muhawieh [justice.gov]
∙ Two More Muhawieh Comps Of Yore Head For The Courthouse Steps [SocketSite]
∙ Another Muhawieh 2007 Noe Comp Heads For The Courthouse Steps [SocketSite]