A former Property Wars star has been arrested for wire fraud following a joint investigation between the IRS and the Department of Homeland Security.
According to a recently unsealed indictment, Scott Menaged (pictured above) worked with three others — Veronica Castro, Alberto Pena, and Troy Flippo — to commit major bank fraud.
Court documents allege the operation took place at Menaged’s furniture stores, where the scammers would set up lines of credit with banks then create fake accounts to cash in.
In some cases, Menaged even stole the identities of dead people to obtain multiple loans and scam lenders out of tens of thousands of dollars!
The former Discovery Channel star had allegedly used one loan to pay for the home while pocketing the rest.
He’s accused of creating fake documents to make it look like he was buying these homes when he was actually just profiting off the additional loans.
On Wednesday, federal agents raided Menaged’s Furniture Plus store in Phoenix, Arizona. Agents say his other store Furniture King is also part of the investigation.
Yasemeen Pitts O’Keefe, a spokeswoman for the Department of Homeland Security, said in a statement:
“HSI and IRS were executing federal arrest and search warrants. Since this is an open and active investigation, nothing else is available at this time.”
The schemers have been charged with multiple counts including conspiracy to defraud, wire fraud, and aggravated identity theft.
[Image via Discovery Channel.]