Photo: FBI
The U.S. Attorney's Office says 50 suspects are in custody and accused of bail bond fraud in Harris County. Federal, state, and local law enforcement arrested 37 of the suspects in Harris County on Wednesday after an investigation lasting two-years. They're accused of conspiracy and wire fraud in a scheme that allowed violent criminals who usually wouldn't qualify for bonds to get out of jail without much difficulty. Three suspects are still on the loose.
“This investigation exposing alleged fraud within the bail bond industry is the first of its kind and the result of a 24-month long FBI Houston-led operation into a colossal bail bond scheme operating out of Harris County,” said FBI Houston Special Agent in Charge Douglas Williams. “By allegedly falsifying financial reports related to bail bonds, the accused individuals secured their release back onto the streets of our community through an illicit revolving door within the bond system.”
“Utilizing the bail bond system in a fraudulent manner to allow the release of criminals is unacceptable. We are proud to have joined with our local, state and federal partners in getting these individuals off the streets,” said Acting Houston Police Chief Larry J. Satterwhite.
“Our crime analysts proactively launched this investigation to target violent offenders and those that exploit our system. These actions undermine the legal process and pose a threat to public safety. We are committed to working diligently with our partners to root out corruption and ensure that those who engage in such fraudulent activities are held accountable,” said Harris County Sheriff Ed Gonzalez. “Our priority remains the safety and security of Harris County residents, and we will continue to take action against those who seek to be involved in criminal activity.”
The indictment alleges 11 individuals are charged in Harris County with criminal offenses who subsequently obtained bonds based on falsified documents.
Employees of AABLE Bonds, including Mary Brown, 29, and Oscar Wattell, 34, both of Houston, allegedly recruited straw co-signers to represent they were working at companies or had earned incomes. The co-conspirators allegedly falsified this information on financial reports since the co-signers did not work at the companies or earn represented incomes.
Co-conspirators allegedly emailed or submitted the falsified co-signer financial reports via electronic communications. According to the indictment, the government and insurance agencies rely on these financial reports to enter into third-party agreements, known as surety bonds.
Out of 53 co-conspirators, all but one face charges in connection to alleged conspiracies to commit wire fraud.
The CEO of AABLE Bonds and an agent of Financial Casualty & Surety - Sheba Muharib, 58, Missouri City, is charged with allegedly affecting persons engaged in the business of insurance. Muharib allegedly knew Wattell had a criminal felony conviction involving dishonesty while engaging in the business of insurance.
If convicted, each face up to 20 years in federal prison and a possible $250,000 maximum fine for the wire fraud and conspiracy to commit wire fraud charges. Muharib could receive up to five years in prison and a $250,000 possible fine upon his conviction.
The FBI, Houston Police Department and Harris County Sheriff’s Office conducted the investigation with the assistance of Texas Department of Public Safety and U.S. Marshals Service. Assistant U.S. Attorneys Michael Day and Colton Turner are prosecuting the case.