Suite 2001
                                                            211 West Fort Street
                                                            Detroit, Michigan 48226-3277
 

For Immediate Release:
Contact:Gina Balaya (313) 226-9758
Stephen Moore, IRS CI (313) 234-2410

May 25, 2004 
 

United States Attorney Jeffrey Collins, Special Agent in Charge of Internal Revenue Service Criminal Investigation, Mark Kroczynski, and Special Agent in Charge of the Federal Bureau of Investigation, Willie T. Hulon, announced that on May 25, 2004, Timothy E. Wirth, 51, of West Bloomfield, Michigan, was arrested on charges stemming from a May 12, 2004, indictment on six counts of making a material false statement for the purpose of influencing the actions of a financial institution, two counts of bank fraud, four counts of filing a false tax return, signed under penalties of perjury, and three counts of failing to file a tax return. 

According to the indictment, in November 1995, Mr. Wirth applied for a $350,000 loan from Franklin Bank of Southfield, Michigan. In the application, he represented that owned Landmark Mobile Home Park located in Warren, Michigan, valued at $1,350,000. Prior to approaching the bank, he filed a forged deed with the Macomb County Register of Deeds, conveying Landmark to himself. In reality, he owed in excess of $400,000 pursuant to a land contract and had substantial monthly payments due. He again approached Franklin Bank in February and October 1997, to apply for further loans of $700,000 and $950,000, respectively. Part of the loan monies were used to pay off the previous loans. Again, he represented in his personal financial statements that he owned Landmark free and clear.

In June 1998, he again approached Franklin Bank for a $30,000 loan and provided various documents, including a 1997 federal income tax return, which had never been filed with the Internal Revenue Service and contained a forged return preparer's signature. 

In February 1999, Mr. Wirth applied for a loan with National City Bank of Saginaw, Michigan, stating that he owned White Birch Mobile Home Park, Birch Run, Michigan, valued at $1,800,000 free and clear. In fact, Mr. Wirth knew that he owed a sizeable balance and was obligated to make substantial monthly land contract payments on White Birch. Mr. Wirth recorded with the Saginaw County Register of Deeds a warranty deed purportedly signed by the true owners conveying the property to him, when, in fact, the signatures were forgeries.

In April 1999, Mr. Wirth, yet again, applied for a loan, this time at Michigan National Bank, now doing business as Standard Federal in Saginaw, Michigan. He stated that he owned White Birch and other associated real estate, free and clear. He again submitted a 1997 federal tax return which was not filed with the Internal Revenue Service. Michigan National Bank did inquire about the National City Bank loan, which Mr. Wirth instructed them that it had been paid in full.

Although Mr. Wirth is charged with failing to file his 1997, 1998, and 1999 tax returns, in September 2003, he did file federal tax returns and partnership returns for 1997 and 1998. The indictment alleges that his personal returns failed to report over $197,000 in taxable income and failed to report all of his gross receipts from his mobile parks on the partnership returns.

Making a material false statement for the purpose of influencing the actions of a financial institution is in violation of Title 18 U.S.C. Section 1014 and bank fraud is in violation of Title 18 U.S.C. Section 1344. Each count of conviction under either statute carries a maximum penalty of 30 years imprisonment and a $1,000,000 fine. Filing a false tax return, signed under penalties of perjury, is in violation of Title 26, U.S.C. Section 7206 (1).

Each count of conviction carries a maximum penalty of three years imprisonment and $250,000 fine. Failing to file a tax return is a misdemeanor in violation of Title 26 U.S.C. Section 7203. Each count of conviction carries a maximum of not more than one year imprisonment and a $100,000 fine.

An indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

Mr. Collins commended the special agents of the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation and the Saginaw County Prosecutors Office for their work in this investigation. Assistant United States Attorney Jim Brunson is prosecuting the case.