New York Paralegal Blog

Benton J. Campbell, United States Attorney for the Eastern District of New York, and Kenneth Donohue, Inspector General for the Department of Housing and Urban Development, announced the filing of a civil complaint against Madison Home Equities, Inc., a mortgage lender located in Carle Place, Long Island, seeking a court-ordered injunction to prevent the company from making loans insured by the Federal Housing Administration (“FHA”). The complaint also seeks relief against Madison’s president, Nadine Malone. The case is pending before United States District Judge Nicholas G. Garaufis. As alleged in the civil complaint, Madison participates in a federal program sponsored by the United States Department of Housing and Urban Development (“HUD”) which authorizes Madison to make mortgage loans that are insured by FHA in the event of default. As a condition of participation in the program, Madison must determine that all borrowers who receive FHA-insured mortgage loans meet HUD lending stand...

WASHINGTON – The United States has sued a Houston tax preparer, seeking to put him out of business, the Justice Department announced today. The civil injunction suit, filed in U.S. District Court for the Southern District of Texas, seeks to permanently bar Kyle C. Kasten and his business, KJ & J Tax Services, from preparing federal returns for others. According to the government complaint, Kasten prepares federal income tax returns with fabricated claims for the federal fuel tax credit. The credit is available only in limited circumstances for off-highway business use. Kasten allegedly claimed that one customer used 44,005 gallons of gasoline in 2007 when the customer’s return showed he earned only $802 that year. The complaint states that, assuming a cost of $2 per gallon, the customer would have had to spend $88,010 to purchase that amount of gasoline. In another example identified in the complaint, Kasten allegedly claimed that a customer used 55,083 gallons of gasoline in 2007....